MINOR PROJECT REPORT ON THE STUDY OF ANALYSIS OF FINANCIAL STATEMENT OF ICICI BANK

Submitted in the partial fulfillment of required for the award of degree of Bachelor of Business Administration.

Submitted By: Akanksha Jain ENROLL No- 001 /KRCHE /BBA(B&I)/2006

Under the guidance (MR. A. L nin Jo!hi) ( M"s. Ma#h$ A"o"a)

KASTURI RAM COLLEGE OF HIGHER EDUCATION

(AFFILATED TO GURU GOBIND SINGH UNIVERSITY, DELHI)

ACKNO%LE&'EMEN(
Getting a project ready requires the work and effort of many people. would like to pay my sincere gratitude and thanks to those people! who directed me at e"ery step in this project work. #he present report is based on $ A%A&'S S () ) %A%* A& S#A#+,+%#- *AS+ S#U.' () * * BA%/0. I )! n# # *+ sin, " !hank an# -"a!i!$# !o M"s. Ma#h$ A"o"a. in! "na/ 0a,$/!+. 0o" h " h /1 an# 2a/$a3/ s$11o"! !h"o$-ho$! !h ! "* o0 !h 1"o4 ,!. I! 5as a / a"nin- )1 "i n, !o 5o"k $n# " h " -$i#an, . I a* a/so 2 "+ !hank0$/ !o M". A. L nin Jo!hi 5ho has -i2 n * !h o11o"!$ni!+ !o #o !his 1"o4 ,! " 1o"!. I a* a/so !hank0$/ !o *+ 1a" n!s. a// *+ 0"i n#s an# o!h " so$", s 5ho -a2 * !h i" *$,h n # # s$11o"! an# ins1i"a!ion in 1" 1a"in- !his 1"o4 ,! " 1o"!.

1A/A%/S2A 3A %4

CER(I6ICA(E
#his is to certify that $,s. Akanksha 3ain0 has accomplished the project titled $A%A&'S S () ) %A%* A& S#A#+,+%#- *AS+ S#U.' () * * BA%/0 under my guidance and super"ision. 7h has s$3*i!! # !his 1"o4 ,! in !h 1a"!ia/ 0$/0i//* n! 0o" !h a5a"# o0 # -" o0 Ba,h /o" o0 B$sin ss A#*inis!"a!ion (B.B.A8B&I9) 0"o* '$"$ 'o3in# 7in-h In#"a1"as!ha :ni2 "si!+. #he work has not been anywhere else for the award of degree. All source of information ha"e been duly mentioned.

Mrs. Madhu Arora 1&ecturer4 1/asturi 5am *ollege (f 2igher +ducation4

CON(EN(
;A'E NO.

1. IN(RO&:C(ION

1.1 A Brief 2 1.2O34 ,!i2 s 1.=ICICI Bank 6.7.6 2istory 6.7.8 Board of .irectors 6.7.7 Board *ommittees 6.7.9 (rganisational Structure 6.7.; <roducts = Ser"ices 6.7.> 5isk Aspects 6.7.: Subsidiary companies 6.7.? /ey Group *ompanies 6.7.@ <ublic 5ecognition

Introduction 2 = > < 6 : 12 1? 21 22 2>

1-2<

2. 6INANCIAL 7(A(EMEN( AN& I(@7 ANALA7I7

2.1 7!$#+ o0 ;"o0i! & Loss A/C

26->>
2B 2? =? >0

2.2 7!$#+ o0 Ba/an, -7h ! 2.= 7!$#+ o0 ,ash 0/o5 s!a! * n! 2.= 6inan,ia/ 7!a! * n! Ana/+sis

=. ANALA7I7 O6 6INANCIAL 7(A(EMEN( O6 ICICI BANK

=.1 Mana- * n! &is,$ssion & Ana/+sis

><-61
>6 <= << <B 60

=.2 Co*1a"a!i2 In,o* 7!a! * n! =.= Co*1a"a!i2 6inan,ia/ ;osi!ion 7!a! * n! =.> Ra!io Ana/+sis- 6inan,ia/ 7!a! * n! =.< Cash 6/o5 7!a! * n!

>. CONCL:7ION <. RECOMMEN&A(ION & 7:''E7(ION

62-6> 6<-66

BIBLIO'RA;HA ANNEC:RE B0
;"o0i! & Loss A,,o$n! Ba/an, -7h ! 6D

6B 6?-

CHAPTER-1 INTRODUCTION

1.1 A BRIEF INTRODUCTION

n any organiAation! the two important financial statements are the Balance sh ! & ;"o0i! an# /oss a,,o$n! o0 the business. Balance sheet is a statement of the financial position of an enterprise at a particular point of time. <rofit and loss account shows the net profit or net loss of a company for a specified period of time. Bhen these statements of the last few year of any organiAation are studied and analyAed! significant conclusions may be arri"ed regarding the changes in the financial position! the important policies followed and trends in profit and loss etc. Analysis and interpretation of the financial statement has now become an important technique of credit appraisal. #he in"estors! financial eCperts! management eCecuti"es and the bankers all analyAe these statements. #hough the basic technique of appraisal remains the same in all the cases but the approach and the emphasis in analysis "ary. A banker interprets the financial statement so as to e"aluate the financial soundness and stability! the liquidity position and the profitability or the earning capacity of borrowing concern. Analysis of financial statement is necessary because it help in depicting the financial position on the basis of past and current records. Analysis of financial statement help in making the future decision and strategies. #herefore! it is "ery necessary for e"ery organiAation whether it is a financial or manufacturing etc. to make financial statement and to analyse it.

1.2 OBJEC(IEE
#he main objecti"e of this report are the following: #o study about * * BA%/ and its related aspects like its products = ser"ices! history! organiAational structure! subsidiary companies etc.

To analyse the financial statement i.e P&L account and Balance sheet of ICICI BANK. To learn about P&L Account, Balance-sheet and different ty e of Assets& Liabilities. To understandin! the meanin! and need of Balance "heet and rofit and loss account. The ur ose is to ortray the financial osition of ICICI BANK #ith the hel of balance sheet and rofit and loss account. To e$aluate the financial soundness ,stability and li%uidity of ICICI BANK.

1.3 ICICI BANK

ICICI Bank is In#ia@s s ,on#-/a"- s! 3ank 5i!h !o!a/ ass !s o0 Rs. 7!99>.;? billion (:7F BD 3i//ion) a! Ma",h =1. 200B an# 1"o0i! a0! " !a) o0 Rs. 76.6D 3i//ion 0o" 0is,a/ 200B. ICICI Bank is !h *os! 2a/$a3/ 3ank in In#ia in ! "*s o0 *a"k ! ,a1i!a/iGa!ion an# is "ank # third amongst all the companies listed on the ndian stock eCchanges. In ! "*s o0 0" 0/oa! *a"k ! ,a1i!a/iGa!ionH. (h Bank has a n !5o"k o0 a3o$! @;D branches an# 7!7DD A#,s in In#ia an# 1" s n, in 1B ,o$n!"i s. ICICI Bank o00 "s a 5i# "an- o0 3ankin- 1"o#$,!s an# 0inan,ia/ s "2i, s !o ,o"1o"a! an# " !ai/ ,$s!o* " !h"o$-h a 2a"i !+ o0 # /i2 "+ ,hann /s an# !h"o$-h i!s s1 ,ia/iG # s$3si#ia"i s an# a00i/ia! s in !h a" as o0

in2 s!* n! 3ankin-. /i0 an# non-/i0 ins$"an, . 2 n!$" ,a1i!a/ an# ass ! *ana- * n!. (h Bank ,$"" n!/+ has s$3si#ia"i s in !h :ni! # Kin-#o*. R$ssia an# Cana#a. 3"an,h s in 7in-a1o" . Bah"ain. HonKon-. 7"i Lanka an# &$3ai In! "na!iona/ 6inan, " 1" s n!a!i2 o00i, s in !h C n! " an# :ni! # 7!a! s. :ni! # A"a3 E*i"a! s.

China. 7o$!h A0"i,a. Ban-/a# sh. (hai/an#. Ma/a+sia an# In#on sia. :K s$3si#ia"+ has s!a3/ish # a 3"an,h in B /-i$*. ICICI BankIs equity shares are listed in ndia on Bombay Stock +Cchange 1BS+4 and the %ational Stock +Cchange 1%S+4 of ndia &imited and its American .epositary 5eceipts 1A.5s4 are listed on the %ew 'ork Stock +Cchange
1%'S+4.

1.=.1HI7(ORA
* * Bank was originally promoted in 1DD> 3+ ICICI Li*i! #! an ndian financial institution! and was its wholly owned subsidiary. * * Es shareholding in * * Bank was reduced to 9>F through a public offering of shares in ndia in fiscal 6@@?! an equity offering in the form of A.5s listed on the %'S+ in fiscal 8DDD! * * BankEs acquisition of Bank of ,adura &imited in an all-stock amalgamation in fiscal 8DD6! and secondary market sales by * * to institutional in"estors in fiscal 8DD6 and fiscal 8DD8. * * was formed in 6@;; at the initiati"e of the Borld Bank! the Go"ernment of ndia and representati"es of ndian industry. #he principal objecti"e was to create a de"elopment financial institution for pro"iding medium-term and long-term project financing to ndian businesses. n the 6@@Ds! * * transformed its business from a de"elopment financial institution offering only project finance to a di"ersified financial ser"ices group offering a wide "ariety of products and ser"ices! both directly and through a number of

subsidiaries and affiliates like * * Bank. n 6@@@! * * become the first ndian company and the first bank or financial institution from non-3apan Asia to be listed on the %'S+. After consideration of "arious corporate structuring alternati"es in the conteCt of the emerging competiti"e scenario in the ndian banking industry! and the mo"e towards uni"ersal banking! the managements of * * and * * Bank formed the "iew that the merger of * * with * * Bank would be the optimal strategic alternati"e for both entities! and would create the optimal legal structure for the * * groupEs uni"ersal banking strategy. #he merger would enhance "alue for * * shareholders through the merged entityEs access to low-cost deposits! greater opportunities for earning feebased income and the ability to participate in the payments system and pro"ide transaction-banking ser"ices. #he merger would enhance "alue for ** Bank shareholders through a large capital base and scale of operations! seamless access to * * Es strong corporate relationships built up o"er fi"e decades! entry into new business segments! higher market share in "arious business segments! particularly fee-based ser"ices! and access to the "ast talent pool of * * and its subsidiaries. n (ctober 8DD6! the Boards of .irectors of * * and * * Bank appro"ed the merger of * * and two of its wholly-owned retail finance subsidiaries! * * <ersonal )inancial Ser"ices &imited and * * *apital Ser"ices &imited! with * * Bank. #he merger was appro"ed by shareholders of * * and * * Bank in 3anuary 8DD8! by the 2igh *itst of Gujarat at Ahmedabad in ,arch 8DD8! and by the 2igh *itst of 3udicature at ,umbai and the 5eser"e Bank of ndia in April 8DD8. *onsequent to the merger! the * * groupEs financing and banking operations! both wholesale and retail! ha"e been integrated in a single entity.

* * Bank has formulated a *ode of Business *onduct and +thics for its directors and employees.

1.3.2 BOARD OF DIRECTORS

,5. %.Gaghul 1*2A 5,A%4 ,5. Sridar yengar ,5. &akshmi %. ,ittal ,5. %arendra ,urkumbi ,5. Anupam <uri ,5. Ginod 5ai ,5. ,. /. Sharma ,5. <.,. Sinha <rof. ,arti G. Subrahmanyam ,5. #. S. Gijayan ,5. G. <rem Basta ,5. /. G. /amath 1,A%AG %G . 5+*#(5 = *+(4 ,5. *handa /ochhar 13( %# ,A%AG %G . 5+*#(54 ,5. %achiket ,or 1.+<U#' ,A%AG %G . 5+*#(54 ,5. G. Gaidyanathan! 1+H+*U# G+ . 5+*#(54 ,5. Sonjoy *hatterjee 1+H+*U# G+ . 5+*#(54

1.3.3 BOARD COMMITTEES

Audit Committee

Board Governance & Remuneration Committee

,r. Sridar yengar ,r. %arendra ,urkumbi ,r. ,. /. Sharma

,r. %. Gaghul ,r. Anupam <uri ,r. ,. /. Sharma ,r. <. ,. Sinha <rof. ,arti G. Subrahmanyam

C$s!o* " 7 "2i, Co**i!! ,r. %. Gaghul ,r. %arendra ,urkumbi ,r. ,./. Sharma ,r. <.,. Sinha ,r. /. G. /amath 6"a$# Moni!o"in- Co**i!! ,r. ,. /. Sharma ,r. %arendra ,urkumbi ,r. /. G. /amath ,s. *handa .. /ochhar ,r. G. Gaidyanathan 7ha" ("ans0 " & 7ha" ho/# "s/ In2 s!o"s '"i 2an, Co**i!! ,r. ,. /. Sharma ,r. %arendra ,urkumbi ,s. *handa .. /ochhar ,s. ,adhabi <uri-Buch

Credit Committee
,r. %. Gaghul ,r. %arendra ,urkumbi ,r. , ./. Sharma ,r. <. ,. Sinha ,r. /. G. /amath

Risk Committee
,r. %. Gaghul ,r. Sridar yengar <rof. ,arti G. Subrahmanyam ,r. G. <rem Batsa ,r. /. G. /amath Ass !-Lia3i/i!+ Mana- * n! Co**i!! ,s. *handa .. /ochhar .r. %achiket ,or ,s. ,adhabi <uri-Buch ,r. G. Gaidyanathan

Committee of Directors
,r. /. G. /amath ,s. *handa .. /ochhar .r. %achiket ,or ,s. ,adhabi <uri-Buch ,r. G. Gaidyanathan

1.3.4 ORGANISATIONAL STRUCTURE OF ICICI BANK

* * BankIs organisation structure is designed to be fleCible and customerfocused! while seeking to ensure effecti"e control and super"ision and consistency in standards across the organisation and align all areas of operations to o"erall organisational objecti"es. #he organisation structure is di"ided into siC principal groups J R !ai/ Bankin-. %ho/ sa/ Bankin-. In! "na!iona/ Bankin-. R$"a/ (Mi,"o-Bankin-) an# A-"i,$/!$" Bankin-. 'o2 "n* n! Bankin- an# Co"1o"a! C n! ".

RETAIL BANKING (h R !ai/ Bankin- '"o$1 is " s1onsi3/ 0o" 1"o#$,!s an# s "2i, s 0o" " !ai/ ,$s!o* "s an# s*a// n! "1"is s in,/$#in- 2a"io$s ," #i! 1"o#$,!s. /ia3i/i!+ 1"o#$,!s. #is!"i3$!ion o0 !hi"# 1a"!+ in2 s!* n! an# ins$"an, 1"o#$,!s an# !"ansa,!ion 3ankin- s "2i, s.

WHOLESALE BANKING
(h %ho/ sa/ Bankin- '"o$1 is " s1onsi3/ 0o" 1"o#$,!s an# s "2i, s 0o" /a"an# * #i$*-siG # ,o"1o"a! ,/i n!s. in,/$#in- ," #i! an# !" as$"+ 1"o#$,!s. in2 s!* n! 3ankin-. 1"o4 ,! 0inan, . s!"$,!$" # 0inan, an# !"ansa,!ion 3ankin- s "2i, s. %#+5%A# (%A& BA%/ %G (h In! "na!iona/ Bankin- '"o$1 is " s1onsi3/ 0o" i!s in! "na!iona/ o1 "a!ions. in,/$#in- o1 "a!ions in 2a"io$s o2 "s as *a"k !s as 5 // as

i!s 1"o#$,!s an# s "2i, s 0o" non-" si# n! In#ians an# i!s in! "na!iona/ !"a# 0inan, an# ,o"" s1on# n! 3ankin- " /a!ionshi1s.

RURAL AND AGRICULTURAL BANKING (h R$"a/. Mi,"o-Bankin- & A-"i-B$sin ss '"o$1 is " s1onsi3/ 0o" n2isionin- an# i*1/ * n!in- "$"a/ 3ankin- s!"a! -+. in,/$#ina-"i,$/!$"a/ 3ankin- an# *i,"o-0inan, . GOVERNMENT BANKING #he Go"ernment Banking Group is responsible for go"ernment banking initiati"es.

CORPORATE CENTER #he *orporate *enter comprises the internal control en"ironment functions 1including operations! risk management! compliance! audit and legal4K finance 1including financial reporting! planning and strategy! asset liability management! in"estor relations and corporate communications4K human resitsces managementK and facilities management = administration.

BUSINESS REVIEW .uring fiscal 8DD:! the Bank continued to grow and di"ersify its asset base and re"enue streams by le"eraging the growth platforms created o"er the past few years. t maintained its leadership position in retail credit! achie"ed robust growth in its fee income from both corporate and retail customers! grew its deposit base and significantly scaled up its international operations and rural reach.

RETAIL BANKING ICICI is !h /a"- s! 1"o2i# " o0 " !ai/ ," #i! in In#ia. ICICI@s !o!a/ " !ai/ #is3$"s * n!s in 0is,a/ 200B 5 " a11"o)i*a! /+ Rs. BBB.00 3i//ion. ,o*1a" # !o a11"o)i*a! /+ Rs. 62B.00 3i//ion in 0is,a/ 2006. I!@s !o!a/ " !ai/ 1o"!0o/io in," as # 0"o* Rs. D21.D? 3i//ion a! Ma",h =1. 2006 !o Rs. 1.2BB.0= 3i//ion a! Ma",h =1. 200B. ,ons!i!$!in- 6<J o0 i!@s !o!a/ /oans a! !ha! #a! . I! ,on!in$ # i!s 0o,$s on " !ai/ # 1osi!s !o ," a! a s!a3/ 0$n#in- 3as . A! Ma",h =1. 200B i! ha# *o" !han 2< *i//ion " !ai/ ,$s!o* " a,,o$n!s. &$"in- 0is,a/ 200B. i! )1an# # i!s 3"an,h n !5o"k. A! Ma",h =1. 200B. i! ha# B<< 3"an,h s an# )! nsion ,o$n! "s ,o*1a" # !o 61> 3"an,h s an# )! nsion ,o$n! "s a! Ma",h =1. 2006. ;$"s$an! !o !h a*a/-a*a!ion o0 (h 7an-/i Bank Li*i! # 5i!h i! 00 ,!i2 A1"i/ 1D. 200B. i! a,K$i" # o2 " 1D0a##i!iona/ 3"an,h s an# )! nsion ,o$n! "s. I! ,on!in$ # !o )1an# i!s / ,!"oni, ,hann /s. na* /+ in! "n ! 3ankin-. *o3i/ 3ankin-. ,a// , n!" s. 1oin! o0 sa/ ! "*ina/s an# A(Ms. an# *i-"a! ,$s!o* " !"ansa,!ion 2o/$* s !o !h s ,hann /s. &$"in- 0is,a/

200B. o2 " ?0J o0 ,$s!o* " in#$, # !"ansa,!ions !ook 1/a, !h"o$-h !h s / ,!"oni, ,hann /s. I! in," as # i!s A(M n !5o"k !o =.2B1 A(Ms.

S,A&& A%. ,+. U, +%#+5<5 S+S In !his s -* n! i!@s s!"a! -+ has 3 n 0o,$s # a"o$n# ,$s!o* " ,on2 ni n, in !"ansa,!ion 3ankin- s "2i, s. an# 5o"kin- ,a1i!a/ /oans !o s$11/i "s o" # a/ "s o0 /a",o"1o"a!ions an# ,/$s! "s o0 s*a// n! "1"is s !ha! ha2 a ho*o- n o$s 1"o0i/ . &$"in- 0is,a/ 200B. i!@s ,$s!o* " 3as in," as # 3+ *o" !han <0J !o o2 " D00.000 !"ansa,!ion 3ankin- ,$s!o* "s. (h s ,$s!o* "s a" s "2i, # 3+ o2 " <?0 3"an,h s o0 !h Bank. ,o2 "in- o2 " 200 /o,a!ions. &$"in- 0is,a/ 200B. !h E* "-in- In#ia A5a"# n! " # in !h Li*,a Book o0 R ,o"#s as !h 3i-- s! 3$sin ss a5a"# in In#ia.

COR;ORA(E BANKIN' tIs corporate banking strategy is based on pro"iding comprehensi"e and customiAed financial solutions to its corporate customers. t offer a complete range of corporate banking products including rupee and foreign currency debt! working capital credit! structured financing! syndication and transaction banking products and ser"ices. )iscal 8DD: saw continuing demand for credit from the corporate sector! with growth and additional in"estment demand in almost all sectors. t is now a preferred partner for ndian companies for syndication of eCternal commercial borrowings and other fund raising in international markets.

RURAL BANKING tIs rural strategy is based on enhancing "alue at e"ery le"el of the supply chain in all important farm and non-farm sectors. #owards this end! it offer a range of financial products and ser"ices that cater to the rural masses in all the important sectors like infrastructure! horticulture! food processing! dairy! poultry! seeds! fertiliser and agrochemical industries. *ustomised financial solutions are offered to indi"idual customers! agri small = medium enterprises! agri corporates and members of their supply chains. (n the rural retail side! the Bank offers crop loans! farm equipment financing! commodity-based loans! working capital loans for agri-enterprises! microfinance loans! jewel loans as well as sa"ings! in"estment and insurance products. n addition bank is introducing products like rural housing finance to cater to the needs of rural customers. .uring fiscal 8DD:! it introduced loans to rural educational institutions for eCpansion of their facilities.
it ha"e de"eloped a hybrid distribution channel strategy! a combination of branch and non-branch channels 1credit access points4. t has embarked on a $no white spaces0 strategy wherein it aim to setup an * * Bank touch point within 6D km of any customer. #he amalgamation of Sangli Bank would eCtend its outreach in rural areas. .uring fiscal 8DD:! a pro"ision of 5s. D.@ billion 1USSL 88 million4 was made on account of identified frauds in warehouse receipt financing business of agricultural credit.

IN(ERNA(IONAL BANKIN' ICICI Bank has s!a3/ish # a s!"on- 0"an,his a*on- non-" si# n! In#ians (NRI). I! has s!a3/ish # s!"on- ,$s!o* " " /a!ionshi1s 3+ o00 "in- a ,o*1" h nsi2 1"o#$,! s$i! . ! ,hno/o-+- na3/ # a,, ss 0o" o2 "s as ,$s!o* "s. a 5i# #is!"i3$!ion n !5o"k in In#ia an# a//ian, s 5i!h /o,a/ 3anks in 2a"io$s *a"k !s. I! has o2 " ><0.000 NRI ,$s!o* "s. I! has $n# "!ak n si-ni0i,an! 3"an#-3$i/#in- ini!ia!i2 s in in! "na!iona/ *a"k !s an# ha2 * "- # as a 5 //-" ,o-nis # 0inan,ia/ s "2i, s 3"an# in in5a"# " *i!!an, s in!o In#ia has 0o" NRIs. I!@s *a"k ! sha"

in," as # !o o2 " 2<J. I! has ,onso/i#a! # i!@s -/o3a/ " *i!!an, ini!ia!i2 . !a"- !in- non-In#ian ,o**$ni!i s. 3+ / 2 "a-in- i!@s ,o" ,a1a3i/i!i s o0 ! ,hno/o-+-3as # s "2i, # /i2 "+. A /a"- n$*3 " o0 " *i!!an, 1"o#$,!s 5 " in!"o#$, # !o ,o*1/ * n! !h )is!in- s$i! o0 1"o#$,!s. (h 3$sin ss 0o,$s has 3 n on "o//in- o$! s$,, ss0$/ 1"o#$,!s a,"oss *$/!i1/ - o-"a1hi s an# - !!in- in!o hi-h 2o/$* ,o"" s1on# n! a""an- * n!s.

1.3.5 PRODUCTS AND SERVICES BANKING ACCOUNTS

* * Bank offers a wide range of banking accounts such as *urrent! Sa"ing! &ife <lus Senior! 5ecurring .eposit! 'oung Stars! Salary Account etc. tailor-made for e"ery customer segments! from children to senior citiAens. *on"enience and ease to access are the benefits of * * Bank accounts.

YOUNG STARS ACCOUNT

A special portal for children to learn banking basics! manage personal finances and ha"e a lot of fun. BANK@CAMPUS #his student banking ser"ices gi"es students access to their account details at the click of a mouse. <lus! the student gets a chequebook! debit card and annual statements. SAVINGS ACCOUNTS *on"enience is the name of the game with * * bankIs sa"ings account. whether it is an A#,Mdebit card! easy withdrawal! easy loan options or internet banking! * * bankIs sa"ing account always keep you in touch of money. FIXED DEPOSITS

* * Bank offers a range of deposit solutions to meet "arying needs at e"ery stage of life. t offers a range of tenures and other features to suit all requirements.

INSURANCE
#he * * group offers a range of insurance products to co"er "arying needs ranging from life! pensions and health! to home! motor and tra"el insurance. #he products are made accessible to customers through a wide network of ad"isors! banking partners! *orporate agents and brokers with the added con"enience of being able to buy online.

LIFE INSURANCE #he * * group pro"ides the many life insurance product through * * <rudential &ife nsurance *ompany. GENERAL INSURANCE #he * * group pro"ides the many general insurance products like motor! tra"el and home insurance through * * &ombard General nsurance *ompany.

LOAN7 * * bank offers a range of deposits solutions to meet "arying needs at e"ery stage of life. t offers a range of tenures and other features to suit all requirements. HOME LOAN (h No. 1 Ho* Loans ;"o2i# " in !h ,o$n!"+. ICICI Bank Ho* Loans o00 "s so* $n3 a!a3/ 3 n 0i!s !o i!s ,$s!o* "s -

&oo"s! 1 7 "2i, . 7i*1/i0i # &o,$* n!a!ion an# '$i#an, !h"o$-ho$! !h ;"o, ss. I!Is " a//+ as+ L P&'"(NAL L(AN ICICI Bank ; "sona/ Loans a" 0o" an a*o$n! $1!o Rs. 1< /akhs. )&*ICL& L(AN" (h No. 1 0inan,i " 0o" car loans in !h ,o$n!"+. N !5o"k o0 *o" !han 2<00 ,hann / 1a"!n "s in o2 " 1000 /o,a!ions. (i -$1s 5i!h a// / a#in- a$!o*o3i/ *an$0a,!$" "s !o ns$" !h 3 s! # a/s. 6/ )i3/ s,h * s & K$i,k 1"o, ssin- a" !h *ain a#2an!a- s a" h " . A2ai/ a!!"a,!i2 s,h * s a! ,o*1 !i!i2 in! " s! "a! s 0"o* !h No 1 6inan,i " 0o" #wo Bheeler &oans in !h ,o$n!"+ . 6inan, 0a,i/i!+ $1!o D0J o0 !h On Roa# Cos! o0 !h 2 hi,/ . " 1a+a3/ in ,on2 ni n! " 1a+* n! o1!ions an# ,o*0o"!a3/ *on!hs !o =6 *on!hs ! no"s 0"o* 6 as+ !o - ! an# a3so/$! /+ hass/ 0" . %i!h *ini*$* #o,$* n!a!ion +o$ ,an no5 s ,$" a /oan

*A5.S ICICI Bank o00 "s a 2a"i !+ o0 ,a"#s !o s$i! #i00 " n! !"ansa,!iona/ n #s. I!s "an- in,/$# s C" #i! Ca"#s. & 3i! Ca"#s an# ;" 1ai# ,a"#s. (h s ,a"#s o00 " +o$ ,on2 ni n, 0o" 0inan,ia/ !"ansa,!ions /ik ,ash 5i!h#"a5a/. sho11in- an# !"a2 /. (h s ,a"#s a" 5i# /+ a,, 1! # 3o!h in In#ia an# a3"oa#. C'&+IT CA'+ ICICI Bank C" #i! Ca"#s -i2 +o$ !h 0a,i/i!+ o0 ,ash. ,on2 ni n, an# a "an- o0 3 n 0i!s. an+5h " in !h 5o"/#. (h s

3 n 0i!s "an- 0"o* /i0 !i* 0" #is,o$n!s an# *$,h *o" . +&BIT CA'+

,a"#s. Ins$"an, 3 n 0i!s. -/o3a/

* "- n,+ assis!an, s "2i, . #is,o$n!s. $!i/i!+ 1a+* n!s. !"a2 /

(h ICICI Bank & 3i! Ca"# is a " 2o/$!iona"+ 0o"* o0 ,ash !ha! a//o5s ,$s!o* "s !o a,, ss !h i" 3ank a,,o$n! a"o$n# !h ,/o,k. a"o$n# !h 5o"/#. (h ICICI Bank & 3i! Ca"# ,an 3 $s # 0o" sho11in- a! *o" T'A)&L CA'+ ICICI Bank ("a2 / Ca"#. (h Hass/ 6" 5a+ !o ("a2 / !h 5o"/#. ("a2 /in- 5i!h :7 &o//a". E$"o. ;o$n# 7! "/in- o" 75iss 6"an,sM Lookin- 0o" s ,$"i!+ an# ,on2 ni n, M !ak ICICI Bank ("a2 / Ca"#. Iss$ # in #$1/i,a! . O00 "s !h ;in 3as # s ,$"i!+. Has !h ,on2 ni n, o0 $sa- o0 C" #i! o" & 3i! ,a"#. ,(B &+ BA%/ %G Bank on !h *o2 5i!h ICICI Bank Mo3i/ Bankin-. %i!h ICICI Bank. Bankin- is no /on- " 5ha! i! $s # !o 3 . ICICI Bank o00 "s Mo3i/ Bankin- 0a,i/i!+ !o a// i!s Bank. C" #i! Ca"#. & *a! an# Loan ,$s!o* "s. ICICI Bank Mo3i/ Bankin- ,an 3 #i2i# # in!o !5o 3"oa# ,a! -o"i s o0 0a,i/i!i sN Alert facility : ICICI Bank Mo3i/ Bankin- A/ "!s 0a,i/i!+ k 1s +o$ in0o"* # a3o$! !h si-ni0i,an! !"ansa,!ions in +i!s A,,o$n!s. I! k 1s +o$ $1#a! # 5h " 2 " +o$ -o. !han =.< Lakh * ",han!s in In#ia an# 2> *i//ion * ",han!s 5o"/#5i# .

5equest facility : ICICI Bank Mo3i/ Bankin- R K$ s!s 0a,i/i!+ na3/ s +o$ !o K$ "+ 0o" +i!s a,,o$n! 3a/an, . %G+S#,+%# <5(.U*#S: A/on- 5i!h & 1osi! 1"o#$,!s an# Loan o00 "in-s. ICICI Bank assis!s +o$ !o *ana- +i!s 0inan, s 3+ 1"o2i#in2a"io$s in2 s!* n! o1!ions "an-in- 0"o* ICICI Bank (a) 7a2in- Bon#s !o EK$i!+ In2 s!* n!s !h"o$-h Ini!ia/ ;$3/i, O00 "s an# In2 s!* n! in ;$" 'o/#. ICICI Bank 0a,i/i!a! s 0o//o5in- in2 s!* n! 1"o#$,!sN

* * Bank #aC Sa"ing Bonds Go"ernment of ndia Bonds n"estment in ,utual )unds nitial <ublic (ffers by *orporates n"estment in N<ure GoldN )oreign +Cchange Ser"ices Senior *itiAens Sa"ings Scheme! 2004

(RA&E-7EREICE7N * * Bank offers online remittances as well as online processing of letters of credit and bank guarantees. A77E(-MANA'EMEN(N <rudential * * Asset ,anagement *ompany offers a wide range of retail mutual fund products tailored to suit "aried risk and maturity profiles.

CASH MANAGEMENT: ICICI Bank offers a complete range of highly customized solutions for managing both the collections and payments requirements of clients by leveraging technology. Daily customized transactions reports and real time web-enabled downloads, provide ontap information facilitating effective working capital management.

CORPORATE BANKING: ICICI Bank offers comprehensive and customized financial solutions for its corporate clients, including rupee and foreign currency debts, working capital credit, structured financing syndication and transaction banking products and services

INTERNET BANKING! Internet banking is available to all ICICI bank savings and deposit account holders, credit card, demat and loan customers Internet banking service offers customers a world of convenience with services such as balance en"uiry, transaction history, account statement, bill payments, fund transfers and accounts related service re"uests

ATMs ,ith more than -.// AT0s across the country, ICICI Ban1 has one of the lar!est AT0 net#or1s in India

PHONE BANKING: #hone banking offers 24$% service across liability, asset and investment products to both retail and corporate customers

NRI-BANKING: & gamut of services to take care of all '(I banking needs including deposits, money transfers and private banking

MONEY2INDIA: & complete range of online and offline money transfer solutions to send money to India
;RO;ER(AN )or millions of home buyers across the country! * * Bank offers not just great deals on home loans but also a wealth of eCpert ad"ice. * * Bank offers home search ser"ice which can help a customer identify the property of his choice based on his budget and other requirements.

&EMA( ACCO:N(7N * * BankIs demat ser"ices after unique features like e-constructions! consolidation! digitally signed statements! mobile requests and corporate benefit tracking. R:RAL-BANKIN'N Bank offers technology-based solutions! financial inno"ations and multiple deli"ery channels to meet the financial needs of rural areas. MICRO6INANCEN * * Bank assists o"er 8.; million low income clients to build li"elihoods by partnering Bith o"er 6DD microfinance institutions. BRANCHE7N * * Bank has a network of o"er >7D branches 1 of which ;6 are eCtension counters4 across the country. #he network puts a wide

range of banking products and financial ser"ices with in easy reach of retail and corporate customers.

1.3.! RISK ASPECTS OF ICICI BANK

RISK MANAGEMENT
Risk is an in! -"a/ 1a"! o0 !h 3ankin- 3$sin ss an# 3ank ai* a! # /i2 "in- s$1 "io" sha" ho/# " 2a/$ 3+ a,hi 2in- an a11"o1"ia! !"a# -o00 3 !5 n "isk an# " !$"ns. Bank is )1os # !o 2a"io$s "isks. in,/$#in- ," #i! "isk. *a"k ! "isk an# o1 "a!iona/ "isk. Bank@s "isk *ana- * n! s!"a! -+ is 3as # on a ,/ a" $n# "s!an#in- o0 2a"io$s "isks. #is,i1/in # 1$"1os a" "isk ass ss* n! an# * as$" * n! 1"o, #$" s an# ,on!in$o$s *oni!o"in-. (h 1o/i,i s an# 1"o, #$" s s!a3/ish # 0o" !his ,on!in$o$s/+ 3 n,h*a"k # 5i!h in! "na!iona/ 3 s! 1"a,!i, s. Bank has !5o # #i,a! # -"o$1s. !h RI7K MANA'EMEN( 'RO:; (RM') an# COM;LIANCE & A:&I( 'RO:; (CA') 5hi,h is " s1onsi3/ 0o" ass ss* n!. *ana- * n! an# *i!i-a!ion o0 "isk in ICICI Bank. (h s -"o$1s 0"o* 1a"! o0 !h ,o"1o"a! , n! " a" ,o*1/ ! /+ in# 1 n# n! o0 a// 3$sin ss o1 "a!ions an# a" a,,o$n!a3/ !o !h Risk an# A$#i! ,o**i!! s o0 !h Boa"# o0 #i" ,!o"s. RM' is 0$"!h " o"-aniG # in!o !h C" #i! Risk Mana- * n! -"o$1. Ma"k ! Risk Mana- * n! -"o$1. R !ai/ Risk Mana- * n! -"o$1 an# O1 "a!iona/ Risk Mana- * n! -"o$1. CA' is 0$"!h " o"-anis # in!o !h C" #i! ;o/i,i s. RBI Ins1 ,!ion & An!i-Mon + La$n# "in- '"o$1 an# !h In! "na/ A$#i! '"o$1.

CREDIT RISK
*redit risk is the risk that a borrower is unable to meet its financial obligations to the lender. Bank measure! monitor and manage credit risk for each borrower and also at the portfolio le"el. Bank has standardiAed credit-appro"al processes! which include a wellestablished procedure for comprehensi"e credit appraisal and rating. * * Bank has well de"eloped internal credit rating

methodologies for rating obligors. #he rating factors in quantitati"e! qualitati"e issues and credit enhancement features specific to the transaction. #he rating ser"es as a key input in the appro"al as well as post-appro"al credit processes. ndustry knowledge is constantly updated through field "isits and interactions with clients! regulatory bodies and industry eCperts. n retail credit operations! the Board or a Board *ommittee appro"es all products! policies and authoriAations. *redit appro"al authority lies only with the credit officers who are distinct from the sales team. *redit scoring models are used in the case of certain products like credit cards. +Cternal agencies such as field in"estigation agencies and credit processing agencies are used to facilitate a comprehensi"e due diligence process including "isits to offices and homes in the case of loans to indi"idual borrowers.

MARKE( RI7K ,arket risk is the risk of loss resulting from changes in interest rates! foreign currency eCchange rates! equity prices and commodity prices. #he objecti"e of market risk management is to minimiAe the impact of losses on earnings and equity capital due to market risk. ,arket risk policies include the n"estment <olicy and the Asset-&iability ,anagement 1A&,4 <olicy. #he policies are appro"ed by the Board of .irectors. #he Asset &iability ,anagement *ommittee 1A&*(4 of the Board of .irectors stipulate liquidity and interest rate risk limits! monitors adherence to limits! articulates the organisationIs interest rate "iew and determines the strategy in light of the current and eCpected en"ironment. #hese policies and processes are articulated in the A&<, policy. #he in"estment policy addresses issues related to in"estment in "arious trading products. 5,G eCercises independent control o"er the process of market risk management and recommends changes in process and methodologies for measuring market risk nterest rate risk is measured through the use of re-pricing gap analysis and duration analysis. &iquidity risk is measured through gap analysis. Bank ensure adequate liquidity at all time through systematic funds planning and maintenance of liquid in"estment as well as focusing on more stable funding sitsces such as retail deposits. * * Bank limit eCposure to eCchange rate risk by stipulating position limits. #he treasury ,iddle (ffice Group monitors the asset-liability position under the super"ision of the A&*(. #he #reasury ,iddle (ffice Group is also responsible for processing treasury transactions! tracking the daily funds position and complying with all treasury related management and regulatory reporting requirements.

(<5+A# (%A& 5 S/ O1 "a!iona/ "isk is !h "isk o0 /oss !ha! ,an " s$/! 0"o* a 2a"i !+ o0 0a,!o"s. in,/$#in- 0ai/$" !o o3!ain 1"o1 " in! "na/ a$!ho"iGa!ions. o0 o1 "a!iona/ an# o" ""o"s. Bank@s i*1"o1 "/+ #o,$* n! # !"ansa,!ions. 0ai/$"

in0o"*a!ion s ,$"i!+ 1"o, #$" s. ,o*1$! " s+s! *s. so0!5a" K$i1* n!. 0"a$#. ina# K$a! !"ainin- an# *1/o+

a11"oa,h !o o1 "a!iona/ "isk *ana- * n! is # si-n # !o *i!i-a! o1 "a!iona/ "isk 3+ *ain!ainin- a ,o*1" h nsi2 s+s! * o0 in! "na/ ,on!"o/s. s!a3/ishin- s+s! *s an# 1"o, #$" s !o *oni!o" !"ansa,!ions. *ain!ainin- k + 3a,k-$1 1"o, #$" s an# $n# "!akin- " -$/a" ,on!in- n,+ 1/annin-. E00 ,!i2 o1 "a!iona/ "isk *ana- * n! s+s! * 5o$/# ns$" !ha! 3ank has s$00i,i n! in0o"*a!ion !o *ak a11"o1"ia!

# ,isions a3o$! a##i!iona/ ,on!"o/s. a#4$s!* n!s !o ,on!"o/s. o" o!h " "isk " s1ons s. O1 "a!iona/ "isk *ana- * n! 1o/i,+ ai*s a! *ini*iGin/oss s an# ,$s!o* " #issa!is0a,!ion #$ !o 0ai/$" in 1"o, ss s. 0o,$sinon 0/a5s in 1"o#$,!s an# !h i" # si-n !ha! ,an )1os !h 3ank !o /oss s #$ !o 0"a$#. ana/+Gin- !h i*1a,! o0 0ai/$" s in s+s! *s. # 2 /o1in*i!i-an!s !o *ini*iG !h i*1a,! an# # 2 /o1in- 1/ans !o * ! )! "na/ sho,ks !ha! ,an a#2 "s /+ i*1a,! ,on!in$i!+ in !h 3ank@s o1 "a!ions.

1.3." SUBSIDIAR# COMPANIES DOMESTIC SUBSIDIARIES

* * 2ome )inance *ompany &imited * * n"estment ,anagement *ompany &imited * * &ombard General nsurance *ompany &imited * * <rudential &ife nsurance *ompany &imited * * Securities &imited * * #rusteeship Ser"ices &imited * * Genture )unds ,anagement *ompany &imited
* * Securities <rimary .ealership &imited

* * <rudential Asset ,anagement *ompany &imited * * <rudential #rust &imited

INTERNATIONAL SUSIDIARIES
* * Bank *anada * * Bank +urasia &imited &iability *ompany * * nternational &imited

 * * Securities 2olding nc * * Securities nc * * Bank Uk &imited

6.7.? /+' G5(U< *(,<A% +S

ICICI PRUDENTIAL INSURANCE COMPANY ICICI Li0 ,on!in$ # !o *ain!ain i!s *a"k ! / a# "shi1 a*on- 1"i2a! s ,!o" /i0 ins$"an, ,o*1ani s 5i!h a *a"k ! sha" o0 2DJ on !h 3asis o0 5 i-h! # " , i2 # 1" *i$*. Li0 ins$"an, ,o*1ani s 5o"/#5i# *ak /oss s in !h ini!ia/ + a"s. in 2i 5 o0 3$sin ss s !-$1 an# ,$s!o* " a,K$isi!ion ,os!s in !h ini!ia/ + a"s as 5 // as " s "2in- 0o" a,!$a"ia/

/ia3i/i!+. %hi/ !h -"o5in- o1 "a!ions o0 ICICI Li0 ha# a n -a!i2 i*1a,! o0 Rs. >?0 ,"o" (:7F 110 *i//ion) on !h Bank@s ,onso/i#a! # 1"o0i! a0! " !a) in 6A200B on a,,o$n! o0 !h a3o2 " asons. !h ,o*1an+@s $na$#i! # N 5 B$sin ss A,hi 2 # ;"o0i! (NBA;) 0o" 6A200B 5as Rs. ??1 ,"o" (:7F 20= *i//ion) as ,o*1a" # !o Rs. <2? ,"o" (:7F 121 *i//ion) in 6A2006. ICICI LOMBAR& 'ENERAL IN7:RANCE COM;ANA * * &ombard General nsurance *ompany 1 * * General4 enhanced its leadership position with a market share of about 7;F among pri"ate sector general insurance companies and an o"erall market share of about 68.9F during April 8DD>-)ebruary 8DD:. * * GeneralIs gross written premium grew by ?@F from 5s. 6!;@8 crore 1USL 7>> million4 in )'8DD> to 5s. 7!DD9 crore 1USL >@6 million4 in )'8DD:. * * General is required to eCpense upfront! on origination of a policy! all sitscing eCpenses related to the policy. Bhile * * GeneralIs profit after taC for )'8DD: was 5s. >? crore 1USL 6> million4! its combined ratio for )'8DD: was @:F. #he combined ratio is the sum of net claims and eCpenses as a percentage of premiums and indicates the surplus generated on an annualised basis from the business written during a period 1eCcluding in"estment income4. #he surplus based on the combined ratio! and in"estment income aggregated 5s. 6?D crore 1USL 96 million4 on a pre taC basis in )'8DD:. ICICI ;R:&EN(IAL AMC & (R:7( At ,arch 76! 8DD:! * * <rudential Asset ,anagement *ompany 1 * * A,*4 was among the top two asset management companies in ndia with assets under management of o"er 5s. 7:!@DD crore 1USL ?.: billion4. * *

A,*Is profit after taC increased by ;;F to 5s. 9? crore 1USL 66 million4 in )'8DD: from 5s. 76 crore in )'8DD> 1USL : million4. ICICI 7EC:RI(IE7 LIMI(E& #he securities and primary dealership business of the * * group ha"e been reorganised. * * Securities &imited has been renamed as * * <rimary .ealership &imited. * * Brokerage Ser"ices &imited has been renamed as * * Securities &imited and has become a direct subsidiary of * * Bank. +rstwhile * * Bebtrade &imited was amalgamated with * * Securities &imited during fiscal 8DD:. * * Securities achie"ed a profit after taC of 5s. D.>7 billion and * * Securities <rimary .ealership achie"ed a profit after taC of 5s. 6.77 billion! in fiscal 8DD:.

ICICI VENTURE FUNDS MANAGEMENT COMPANY LIMITED * * Genture )unds ,anagement *ompany &imited 1 * * Genture4 strengthened its leadership position in pri"ate equity in ndia! with funds under management of about 5s. @?.DD billion at year-end fiscal 8DD:. * * Genture achie"ed a profit after taC of 5s. D.:D billion in fiscal 8DD: compared to 5s. D.;D billion in fiscal 8DD>.

1.3.$ PUBLIC RECOGNITION

+urin! fiscal -//2, ICICI Ban1 recei$ed se$eral technolo!y focus4 Bank o0 !h A a" 2006 In#ia by #he Banker

resti!ious a#ard in

reco!nition of o$erall business strate!ies, s ecific ob3ecti$es and

B s! ("ansa,!ion Bank in In#ia by Asset #riple AAA B s! ("a# 6inan, in In#ia by Asset #riple AAA B s! &o* s!i, C$s!o#+ in In#ia by Asset #riple AAA B s! Bank o0 !h A a" 2006 by Business ndia B$sin ss L a# "shi1 A5a"# in !h Bankin- ,a! -o"+ by %.#G <rofit Na!iona/ A5a"# 0o" E), // n, in En "-+ Mana- * n! by * Mos! A#*i" # Bank by Business Baron B s! In! -"a! # Cons$* " Bank 7i! in Asia by Global )inance B s! ;" s n!* n! an# ;a+* n! in Asia by Global )inance B s! Cons$* " In! "n ! Bank in In#ia by Global )inance B s! Co"1o"a! /Ins!i!$!iona/ In! "n ! Bank in In#ia by Global )inance B s! R !ai/ Bank In#ia by Asian Banker E), // n, in M$/!i Chann / &is!"i3$!ion by Asian Banker E), // n, in A$!o*o3i/ L n#in- A5a"# by Asian Banker Mos! ("$s! # B"an# A5a"# by 5eaders .igest

CHAPTER-2

STUDY OF FINANCIAL STATEMENT AND ITS ANALYSIS

2.1 7(:&A O6 ;RO6I(& LO77 A/C

MEANIN'N t is a financial statement! which shows net loss of a company for a specified period. #he accounting year means calendar year of 68 months or less or more than 68 months. CON(EN(7: #his presents the re"enues and eCpenses of a company and shows the eCcess of re"enues o"er eCpenses for profit and "ice "ersa for a loss.

6ORMA(N #he *ompanies act does not pro"ide any specific format for this account. 2owe"er it is required to be prepared on the basis of the instructions gi"en in part ii of schedule 1"i4 of the companies act.

MAIN ITEMS OF PROFIT AND LOSS ACCOUNT ($"no2 " o" sa/ sN #he aggregate amount of sales and connected items with the sales such as commission paid to sole-selling agents and other selling agents and brokerage and discounts on sales other than usual trade discount. & 1" ,ia!ionN #he amount of depreciation of fiCed assets and the arrears of depreciation as per section 8D;184 shall be disclosed by way of foot-note. In! " s! on /oans an# # 3 n!$" sN nterest on loans and debentures has to be stated separately. t will include the amount of interest paid as well as outstanding. Mis, //an o$s )1 ns sN n this head items such as rates and taCes! insurance premium etc.! must be stated separately. ;" /i*ina"+ )1 ns sN Such eCpenses include the costs of formation of a company and since their amount is usually large! it is not desirable to write off them in one year.

;"o2ision 0o" !a)a!ionN #he profit and loss account of a company must be debited with the estimated liabilities for taC on the current profits at current rates of taCation.
Unclaimed di"idends: i! is sho5n on !h /ia3i/i!i s si# o0 !h 3a/an, sh ! $n# " !h h a#in- O,$"" n! /ia3i/i!i s O.

In! "i* #i2i# n#sN t is an item of appropriation. t is transferred to the debit side of the <rofit and loss appropriation account.
)inal di"idend as an item of the trial balance: (his is sho5n in !h # 3i! si# o0 !h a11"o1"ia!ion s ,!ion o0 !h 1"o0i! an# /oss a,,o$n!.

;"o1os # #i2i# n# o" 0ina/ #i2i# n# 1"o1os #N Since it is an adjustment item! it has to be shown at two places- n the debit side of the profit and loss appropriation account and on the liabilities side of the balance sheet under the head Ocurrent liabilities and pro"isionsI. ;o/i!i,a/ #ona!ionsN t must be shown as a separate item in the profit and loss account.
.i"idend on interest income: (his i! * is !"ans0 "" # !o !h ," #i! si# o0 !h 1"o0i! an# /oss a,,o$n!.

;a+* n! !o a$#i!o"sN I! *$s! 3 s!a! # s 1a"a! /+. #his will include consultancy fee! auditing fees management ser"ices etc. Mana- "ia/ " *$n "a!ionN #his includes the payments made to managerial remuneration directorIs fee! pension! other allowances and commission.

2.2 STUD# OF BALANCE SHEET

MEANING The balance sheet is a financial sna shot of a com any5s condition at a sin!le oint in time. A balance sheet contains a listin! of the com any5s asset, liability and Ca ital accounts. ,hen someone, #hether a creditor or in$estor, as1s you ho# your com any is doin!, you5ll #ant to

ha$e the ans#er ready and documented. The #ay to sho# off the success of your com any is a balance sheet. A balance sheet is a documented re ort of your com any5s assets and obli!ations, as #ell as the residual o#nershi claims a!ainst your e%uity at any !i$en oint in time. It is a cumulati$e record that reflects the result of all recorded accountin! transactions since your enter rise #as formed. 6ou need a balance sheet to s ecifically 1no# #hat your com any5s net #orth is on any !i$en date. ,ith a ro erly re ared balance sheet, you can loo1 at a balance sheet at the end of each accountin! eriod and 1no# if your business has more or less $alue, if your debts are hi!her or lo#er, and if your #or1in! ca ital is hi!her or lo#er. By analy7in! your balance sheet, in$estors, creditors and others can assess your ability to meet short-term obli!ations and sol$ency, as #ell as your ability to ay all current and lon!-term debts as they come due. The balance sheet also sho#s the com osition of assets and liabilities, the relati$e ro ortions of debt and e%uity financin! and the amount of earnin!s that you ha$e had to retain. Collecti$ely, e8ternal arties to hel assess your com any9s financial status, #hich is re%uired by both lendin! institutions and in$estors before they #ill allot any money to#ard your business, #ill use this information. LEARN (HE &I66EREN( A77E(7 C$"" n! ass !s: *urrent assets include cash and other assets that in the normal course of e"ents are con"erted into cash within the operating cycle. )or eCample! a manufacturing enterprise will use cash to acquire in"entories of materials. #hese in"entories of materials are con"erted into finished products and then sold to customers. *ash is collected from the customers. #his circle from cash back to cash is called an operating cycle. n a

merchandising business one part of the cycle is eliminated. ,aterials are not purchased for con"ersion into finished products. nstead! the finished products are purchased and are sold directly to the customers. Se"eral operating cycles may be completed in a year! or it may take more than a year to complete one operating cycle. #he time required to complete an operating cycle depends upon the nature of the business. t is concei"able that almost all of the assets that are used to conduct your business! such as buildings! machinery! and equipment! can be con"erted into cash within the time required to complete an operating cycle. 2owe"er! your current assets are only those that will be con"erted into cash within the normal course of your business. #he other assets are only held because they pro"ide useful ser"ices and are eCcluded from the current asset classification. f you happen to hold these assets in the regular course of business! you can include them in the in"entory under the classification of current assets. *urrent assets are usually listed in the order of their liquidity and frequently consist of cash! temporary in"estments! accounts recei"able! in"entories and prepaid eCpenses. CashN *ash is simply the money on hand andMor on deposit that is a"ailable for general business purposes. t is always listed first on a balance sheet. *ash held for some designated purpose! such as the cash held in a fund for e"entual retirement of a bond issue! is eCcluded from current assets. Ma"k !a3/ 7 ,$"i!i sN #hese in"estments are temporary and are made from eCcess funds that you do not immediately need to conduct operations. Until you need these funds! they are in"ested to earn a return.

A,,o$n!s R , i2a3/ N Simply stated! accounts recei"ables are the amounts owed to you and are e"idenced on your balance sheet by promissory notes. Accounts recei"able are the amounts billed to your customers and owed to you on the balance sheetEs date. 'ou should label all other accounts recei"able appropriately and show them apart from the accounts recei"able arising in the course of trade. f these other amounts are currently collectible! they may be classified as current assets. In2 n!o"i sN 'our in"entories are your goods that are a"ailable for sale! products that you ha"e in a partial stage of completion! and the materials that you will use to create your products. #he costs of purchasing merchandise and materials and the costs of manufacturing your "arious product lines are accumulated in the accounting records and are identified with either the cost of the goods sold during the fiscal period or as the cost of the in"entories remaining. ;" 1ai# )1 ns sN #hese eCpenses are payments made for ser"ices that will be recei"ed in the near future. Strictly speaking! your prepaid eCpenses will not be con"erted to current assets in order to a"oid penaliAing companies that choose to pay current operating costs in ad"ance rather than to hold cash. (ften your insurance premiums or rentals are paid in ad"ance. In2 s!* n!sN n"estments are cash funds or securities that you hold for a designated purpose for an indefinite period of time. n"estments include stocks or the bonds you may hold for another company! real estate or mortgages that you are holding for income-producing purposes. 'our in"estments also include money that you may be holding for a pension fund.

;/an! Ass !sN (ften classified as fiCed assets! or as plant and equipment! your plant assets include land! buildings! machinery! and equipment that are to be used in business operations o"er a relati"ely long period of time. t is not eCpected that you will sell these assets and con"ert them into cash. <lant assets simply produce income indirectly through their use in operations. In!an-i3/ Ass !sN 'our other fiCed assets that lack physical substance are referred to as intangible assets and consist of "aluable rights! pri"ileges or ad"antages. Although your intangibles lack physical substance! they still hold "alue for your company. Sometimes the rights! pri"ileges and ad"antages of your business are worth more than all other assets combined. O!h " Ass !s: .uring the course of preparing your balance sheet you will notice other assets that cannot be classified as current assets! in"estments! plant assets! or intangible assets. #hese assets are listed on your balance sheet as other assets. )requently! your other assets consist of ad"ances made to company officers! the cash surrender "alue of life insurance on officers! the cost of buildings in the process of construction! and the miscellaneous funds held for special purposes. LEARN (HE &I66EREN( LIABILI(IE7 C$"" n! Lia3i/i!i s: (n the equity side of the balance sheet! as on the asset side! you need to make a distinction between current and long-term items. 'our current liabilities are obligations that you will discharge within the normal operating cycle of your business. n most circumstances your current liabilities will be paid within the neCt year by using the assets you classified as current. #he amount you owe under current liabilities often arises as a result of acquiring current assets such as in"entory or ser"ices that will be

used in current operations. 'ou show the amounts owed to trade creditors that arise from the purchase of materials or merchandise as accounts payable. f you are obligated under promissory notes that support bank loans or other amounts owed! your liability is shown as notes payable. (ther current liabilities may include the estimated amount payable for income taCes and the "arious amounts owed for wages and salaries of employees! utility bills! payroll taCes! local property taCes and other ser"ices. Lon--( "* Lia3i/i!i s: 'our debts that are not due until more than a year from the balance sheet date are generally classified as long-term liabilities. %otes! bonds and mortgages are often listed under this heading. f a portion of your long-term debt is due within the neCt year! it should be remo"ed from the long-term debt classification and shown under current liabilities. & 0 "" # R 2 n$ sN 'our customers may make ad"ance payments for merchandise or ser"ices. #he obligation to the customer will! as a general rule! be settled by deli"ery of the products or ser"ices and not by cash payment. Ad"ance collections recei"ed from customers are classified as deferred re"enues! pending deli"ery of the products or ser"ices. O5n "Is EK$i!+N 'our ownerEs equity must be subdi"ided on your balance sheet: (ne portion represents the amount in"ested directly by you! plus any portion of retained earnings con"erted into paid-in capital. #he other portion represents your net earnings that are retained. #his rigid distinction is necessary because of the nature of any corporation. (rdinarily! stockholders! or owners! are not personally liable for the debts contracted by a company. A stockholder may lose his in"estment! but creditors usually cannot look to his personal assets for satisfaction of their claims. Under normal circumstances!

the stockholders may withdraw as cash di"idends an amount measured by the corporate earnings. #he distinction in this rule gi"es the creditors some assurance that a certain portion of the assets equi"alent to the ownerEs in"estment cannot be arbitrarily withdrawn. (f course! this portion could be depleted from your balance sheet because of operating losses. #he ownerEs equity in an unincorporated business is shown more simply. #he interest of each owner is gi"en in total! usually with no distinction being made between the portion in"ested and the accumulated net earnings. #he creditors are not concerned about the amount in"ested. f necessary! creditors can attach the personal assets of the owners. Basis o0 3a/an, -sh !N Assets P &iability Q +quity BALANCE-7HEE( 7(R:C(:RE #he following Balance sheet structure is just an eCample. t does not show all possible kind of assets! equity and liabilities! but it shows the most usual ones. t could be a consolidated balance sheet. ,onetary "alues are not shown and summary 1total4 rows are missing as well. Ass !s C$"" n! Ass !s *ash and cash equi"alents n"entories Account recei"able n"estment held for trading (ther current assets

Non-C$"" n! Ass !s <roperty! plant and equipment Goodwill (ther intangible fiCed assets n"estment in associates .eferred taC assets Mis, //an o$s E)1 n#i!$"

EK$i!+ An# Lia3i/i!i s Ca1i!a/ & R s "2 Share capital reser"e 5e"aluation reser"e #ranslation reser"e 5etained earnings ,inority interest Non-C$"" n! Lia3i/i!i s Bank loan ssued debt securities .eferred taC liability C$"" n! Lia3i/i!i s Accounts payable *urrent income taC liability Short-term part of bank loans

Short-term pro"isions (ther current liabilities EP:I(A EAL:A(IONN#he real "alue to a purchaser of the business or a shareholder may be different from the net assets shown by the balance sheet. #his is because factors that affect the "alue of a business may not be recorded yet. )or eCample! a purchaser will be interested in the future earnings of the business! whether assets such as property ha"e been re"alued recently! and whether there are potential liabilities in the future such as lawsuits. #he "alue of the assets in the balance has also been based on the assumption that the business is a going concern! otherwise the break-up "alue of the assets may be far less than the "alue in the balance sheet. ;RE;AIRIN' A BALANCE-7HEE( (i!/ an# H a#in-N n practice! the most widely used title is Balance SheetK howe"er Statement of )inancial <osition is also acceptable. %aturally! when the presentation includes more than one time period the title NBalance SheetsN should be used. H a#in-N n addition to the statement title! the heading of your balance sheet should include the legal name of your company and the date or dates that your statement is presented. )or eCample! a comparati"e presentation might be headed: CAQ COR;ORA(ION BALANCE 7HEE(7 & , *3 " =1. 2006 6o"*a!N #here are two basic ways that balance sheets can be arranged. n Account )orm! your assets are listed on the left-hand side and totaled to

equal the sum of liabilities and stockholdersE equity on the right-hand side. Another format is 5eport )orm! a running format in which your assets are listed at the top of the page and followed by liabilities and stockholdersE equity. Sometimes total liabilities are deducted from total assets to equal stockholdersE equity. Ca1!ionsN *aptions are headings within your statement that designate major groups of accounts to be totaled or subtotaled. 'our balance sheet should include three primary captions: Assets! &iabilities and StockholdersE +quity. n the report form of presentation! the placement of your primary captions would be as follows: 8DD> ASS+#S! & AB & # +S A%. S#(*/2(&.+5IS +RU #'. +Ccept in certain specialiAed industries your balance sheet should include the following secondary captions: *U55+%# ASS+#S *U55+%# & AB & # +S O"# " o0 ;" s n!a!ion o0 Ca1!ions: )irst! start with items held primarily for con"ersion into cash and rank them in the order of their eCpected con"ersion. #hen! follow with items held primarily for use in operations but that could be con"erted into cash! and rank them in the order of liquidity. )inally! finish with items whose costs you will defer to future periods or that you cannot con"ert into cash. )ollowing these guidelines! your major assets should normally be presented in the following order:

*ash Short-term marketable securities

#rade notes and accounts recei"able n"entories &ong-term in"estments <roperty and equipment ntangible assets .eferred charges

&iabilities are ordinarily presented in the order of maturity as follows:

.emand notes #rade accounts payable Accrued eCpenses &ong-term debt (ther long-term liabilities

*omponents of stockholdersE equity are usually presented the following order:

<referred stock *ommon stock Additional paid-in capital 5etained earnings Accumulated other comprehensi"e income #reasury stock

2.= 7(:&A O6 CA7H 6LO% 7(A(EMEN(

MEANIN'N *ash flow statement or statement of cash flows is a financial statement that shows a companyEs incoming and outgoing money 1sources and uses of cash4 during a time period 1often monthly or quarterly4. #he

statement shows how changes in balance sheet and income accounts affected cash and cash equi"alents! and breaks the analysis down according to o1 "a!in-! in2 s!in-! and 0inan,in- acti"ities. As an analytical tool the statement of cash flows is useful in determining the short-term "iability of a company! particularly its ability to pay bills.
;:R;O7EN #he cash flow statement reflects a firms liquidity or sol"ency.

#he main purpose to make cash flow statement are as follows:

6. pro"ide information on a firmEs liquidity and sol"ency and its ability

to change cash flows in future circumstances 8. pro"ide additional information for e"aluating changes in assets! liabilities and equity 7. impro"e the comparability of different firmsE operating performance by eliminating the effects of different accounting methods 9. indicate the amount! timing and probability of future cash flows AC(IEI(IE7 INEOLEE& IN CA7H 6LO%N #he cash flow statement is partitioned into cash flow resulting from operating acti"ities! cash flow resulting from in"esting acti"ities! and cash flow resulting from financing acti"ities. O1 "a!in- a,!i2i!i sN (perating acti"ities include the production! sales and deli"ery of the companyEs product as well as collecting payment from its customers. #his could include purchasing raw materials! building in"entory! ad"ertising. In2 s!in- a,!i2i!i sN n"esting acti"ities focus on the purchase of the long-

term assets a company needs in order to make and sell its products! and the selling of any long-term assets. 6inan,in- a,!i2i!i sN 6inan,in- a,!i2i!i s in,/$# !h in0/o5 o0 ,ash 0"o* in2 s!o"s s$,h as 3anks an# sha" ho/# "s. as 5 // as !h o$!0/o5 o0 ,ash !o sha" ho/# "s as #i2i# n#s as !h ,o*1an+ - n "a! s in,o* . O!h " a,!i2i!i s 5hi,h i*1a,! !h /on--! "* /ia3i/i!i s an# K$i!+ o0 !h ,o*1an+ a" a/so /is! # in !h 0inan,in- a,!i2i!i s s ,!ion o0 !h ,ash 0/o5 s!a! * n!.
Analysis of cash flow statement is necessary for e"ery organisation to depict its cash inflow and outflow.

2.4 FINANCIAL STATEMENT ANAL#SIS

MEANING: )inancial statement analysis is the process of eCamining relationships among financial statement elements and making comparisons with rele"ant information. t is a "aluable tool used by in"estors and creditors! financial analysts! and others in their decision-making processes related to stocks! bonds! and other financial instruments. Bith a great understanding of the balance sheet = p=l account and how it is constructed! we can look at some techniques to analyAe the information contained within the balance sheet = p=l account. PURPOSE (h *ain 1$"1os o0 ana/+Gin- !h 0inan,ia/ s!a! * n! a" !h 0o//o5in-N (o ass ss 1as! 1 "0o"*an, an# ,$"" n! 0inan,ia/ 1osi!ion. (o *ak 1" #i,!ions a3o$! !h 0$!$" 1 "0o"*an, o0 a ,o*1an+.

#((&S )(5 A%A&'S %G 6. <+5*+%#AG+ *A&*U&A# (% (h " a" !5o 1o1$/a" * !ho#s 3+ 5hi,h 5 ,an ana/+G !h 0inan,ia/ s!a! * n! 3+ ,a/,$/a!in- 1 ", n!a- as !akin- a ,o**on 3as . 2oriAontal Analysis %h n an ana/+s! ,o*1a" s 0inan,ia/ in0o"*a!ion 0o" !5o o" *o" + a"s 0o" a sin-/ ,o*1an+. !h 1"o, ss is " 0 "" # !o as ho"iGon!a/ ana/+sis. sin, !h ana/+s! is " a#in- a,"oss !h 1a- !o ,o*1a" an+ sin-/ /in i! *. s$,h as sa/ s " 2 n$ s. In a##i!ion !o ana/+s! computes percentage ,o*1a"in- #o//a" a*o$n!s. !h

,han- s 0"o* + a" !o + a" 0o" a// 0inan,ia/ s!a! * n! 3a/an, s. s$,h as ,ash an# in2 n!o"+. A/! "na!i2 /+. in ,o*1a"in- 0inan,ia/ s!a! * n!s 0o" a n$*3 " o0 + a"s. !h ana/+s! *a+ 1" 0 " !o $s a 2a"ia!ion o0 ho"iGon!a/ ana/+sis ,a// # trend analysis. (" n# ana/+sis in2o/2 s ,a/,$/a!ina,h + a"Is 0inan,ia/ s!a! * n! 3a/an, s as 1 ", n!a- s o0 !h 0i"s! + a". a/so kno5n as !h 3as + a". %h n )1" ss # as 1 ", n!a- s. !h 3as + a" 0i-$" s a" a/5a+s 100 1 ", n!. an# 1 ", n!a- ,han- s 0"o* !h 3as + a" ,an 3 # ! "*in #. I0 5 5an! !o ,a/,$/a! J ,han- in sa/ s !h n 5 a11/+ !h 0o//o5in- 0o"*$/aN ; ", n!a- R,han- in sa/ s /Bas A a" 7a/ sH100 Gertical Analysis %h n $sin- 2 "!i,a/ ana/+sis. !h ana/+s! ,a/,$/a! s a,h i! * on a sin-/ 0inan,ia/ s!a! * n! as a 1 ", n!a- o0 a !o!a/. (h ! "*

2 "!i,a/ ana/+sis a11/i s 3 ,a$s

a,h + a"Is 0i-$" s a" /is! #

2 "!i,a//+ on a 0inan,ia/ s!a! * n!. (h !o!a/ $s # 3+ !h ana/+s! on !h in,o* s!a! * n! is n ! sa/ s " 2 n$ . 5hi/ on !h 3a/an, sh ! i! is !o!a/ ass !s. (his a11"oa,h !o 0inan,ia/ s!a! * n! ana/+sis. a/so kno5n as ,o*1on n! 1 ", n!a- s. 1"o#$, s ,o**on-siG 0inan,ia/ s!a! * n!s. *ommon-siAe balance sheets and income statements ,an 3 *o" asi/+ ,o*1a" #. 5h !h " a,"oss !h + a"s 0o" a sin-/ ,o*1an+ o" a,"oss #i00 " n! ,o*1ani s. I0 5 5an! !o ,a/,$/a! J ,han- o0 ,$"" n! ass !s !h n 5 a11/+ !h 0o//o5in- 0o"*$/aN ; ", n!a- N ,$"" n! ass !s/!o!a/ ass !sH100 8. 5A# ( A%A&'S S Financial ratio analysis uses formulas to gain insight into the company and its operations. For the balance sheet, using financial ratios (like the debt-to-equity ratio) can show you a better idea of the companys financial condition along with its operational efficiency. It is important to note that some ratios will need information from more than one financial statement, such as from the balance sheet and the income statement. Ratio analysis facilitates inter-firm and intrafirm comparison. Ratios are often classified using the following terms: LIQUIDITY RATIO Liquidity ratios are measures of the short-term ability of the company to pay its debts when they come due and to meet unexpected needs for cash.

 Current Ratio: The current ratio is a rough indication of a firm ability to service its current obligations. Generally, the higher the current ratio, the greater the cushion between current obligations and a firm ability to pay them. The stronger ratio reflects a numerical superiority of current assets over current liabilities Current ratio is calculated as follows:

Current ratio= Current Assets Current Lia!i"ities

Quick Ratio: It is also known as the acid test ratio, this is a refinement of the current ratio and is a more conservative measure of liquidity. The quick ratio expresses the degree to which a companys current liabilities are recovered by the most liquid current assets. quick ratio is calculated as follows:

#ui$% ratio= &$as' ( )ar%eta!"e se$urities ( Re$ei*a!"es+ $urrent "ia!i"ities

SOLVENCY RATIO Solvency ratios indicate the ability of the company to meet its long-term obligations on a continuing basis and thus to survive over a long period of time. & 3!/%o"!h Ra!ioN #his ratio eCpresses the relationship between capital contributed by creditors and that contributed by owners. t eCpresses the degree of protection pro"ided by the owners for the creditors. #he higher the ratio! the greater the risk being assumed by creditors. #he lower the ratio! the greater the long-term financial safety. A firm with a low debtMworth ratio usually has a greater fleCibility to borrow in the future. A more highly le"eraged company has a more limited debt capacity.

D%&'()*+', +-'.*/T*'-0 L.-&.0.'.%s ( T-12.&0% N%' W*+',

PROFITABILITY RATIO Profitability ratios are gauges of the company's operating success for a given period of time.

Return On Assets: Return on assets is a measure of how effectively the firms assets are being used to generate profit. It is calculated as follows:

Return On Assets= Net In$o)e Tota" Assets

Return On Equity: Return on equity is the bottom line measure for the shareholders, measuring for the profits earned for each rupee invested in business. It is calculated as follows:

Return on E,uit-= Net in$o)e s'are'o".ers e,uit-

)iCedMBorth 5atio: (his "a!io * as$" s !h

)! n! !o 5hi,h o5n "@s

K$i!+ (,a1i!a/) has 3 n in2 s! # in 1/an! an# K$i1* n! (0i) # ass !s). A /o5 " "a!io in#i,a! s a 1"o1o"!iona! /+ s*a// " in2 s!* n! in 0i) # ass !s in " /a!ion !o n ! 5o"!h an# a 3 !! " ,$shion 0o" ," #i!o"s in ,as o0 /iK$i#a!ion. 7i*i/a"/+. a hi-h " "a!io 5o$/# in#i,a! !h o11osi! si!$a!ion. (h 1" s n, o0 s$3s!an!ia/ / as # 0i) # ass !s (no! sho5n on !h 3a/an, -sh ! ) *a+ # , 1!i2 /+ /o5 " !his "a!io.

Fi/e. 0ort' Ratio=Net Fi/e. Assets Tan1i!"e Net 0ort'

CHAPTER-3 ANALYSIS OF FINANCIAL STATEMENT OF

ICICI BANK

3.1 MANAGEMENT DISCUSSION 3 ANAL#SIS

7:MMARA: <rofit before pro"isions and taC increased ;6.6F to 5s. ;?.:9 billion in fiscal 8DD: from 5s. 7?.?? billion in fiscal 8DD> primarily due to an increase in net interest income by 9D.@F to 5s. >>.7> billion in fiscal 8DD: from 5s. 9:.D@ billion in fiscal 8DD> and an increase in noninterest income by 7@.9F to 5s. ;@.69 billion in fiscal 8DD: from 5s. 98.98 billion in fiscal 8DD>! offset! in part! by an increase in noninterest eCpenses by 77.?F to 5s. >>.@6 billion in fiscal 8DD: from 5s. ;D.D6 billion in fiscal 8DD>.

 <ro"isions increased significantly during fiscal 8DD: due to higher pro"isions created on standard assets and lower le"el of write-backs. <rofit before general pro"isioning and taC increased 8:.9F to 5s. 97.:@ in fiscal 8DD: from 5s. 79.7> billion in fiscal 8DD>. <rofit after taC increased 88.9F to 5s. 76.6D billion in fiscal 8DD: from 5s. 8;.9D billion in fiscal 8DD>. N ! in! " s! in,o* in," as # >0.DJ !o Rs. 66.=6 3i//ion in 0is,a/ 200B 0"o* Rs. >B.0D 3i//ion in 0is,a/2006. " 0/ ,!in- an in," as o0 >D.?J in !h a2 "a- 2o/$* o0 in! " s!- a"nin- ass !s. %on-interest income increased by 7@.9F to 5s. ;@.69 billion in fiscal 8DD: from 5s. 98.98 billion in fiscal 8DD> primarily due to a 9;.9F increase in fee income. Non-in! " s! )1 ns s in," as # ==.?J !o Rs. 66.D1 3i//ion in )1 ns s an# >1.DJ in," as in o!h "

0is,a/ 200B 0"o* Rs. <0.01 3i//ion in 0is,a/ 2006 1"i*a"i/+ #$ !o >D.>J in," as in *1/o+ a#*inis!"a!i2 )1 ns s.

<ro"isions and contingencies 1eCcluding pro"ision for taC4 increased to 5s. 88.8> billion in fiscal 8DD: from 5s. :.@8 billion in fiscal 8DD> primarily due to higher pro"isions created on standard assets in accordance with the re"ised guidelines issued by 5B ! a higher le"el of specific pro"isioning on retailloans due to change in the portfolio

miC towards non collateralised loans and seasoning of the loan portfolio and lower le"el of write-backs. (o!a/ ass !s in," as # =B.1J !o Rs. =.>>6.<? 3i//ion a! + a"- n# 0is,a/ 200B 0"o* Rs. 2.<1=.?D 3i//ion a! + a"- n# 0is,a/ 2006 1"i*a"i/+ #$ !o an in," as in /oans 3+ =>.0J an# an in," as in in2 s!* n!s 3+ 2B.<J. 6EE INCOME )ee income increased by 9;.9F to 5s. ;D.68 billion in fiscal 8DD: from 5s. 79.9: billion in fiscal 8DD> primarily due to growth in fee income from retail products and ser"ices! including fee arising from retail assets products and retail liability related fee income like account ser"icing charges and third party distribution fees. )ees from corporate banking and international business also witnessed a strong growth. (REA7:RA INCOME #he gross treasury income increased to 5s. 6D.69 billion in fiscal 8DD: from 5s. :.9D billion in fiscal 8DD> primarily due to higher le"el of gains from equity di"estments! offset in part by 89.>F increase in premium amortisation on Go"ernment securities to 5s. @.@@ billion in fiscal 8DD: from 5s. ?.D8 billion in fiscal 8DD> and lower profits on proprietory trading as a result of the sharp fall in the equity markets in ,ay 8DD> and ad"erse conditions in debt markets. #he amortisation of premium on Go"ernment securities which was earlier shown as pro"isions and

contingencies has been reclassified under income from treasury-related acti"ities as per the re"ised guidelines of 5B .

LEASE & OTHER INCOME

&ease income decreased by 79.6F to 5s. 8.7? billion in fiscal 8DD: from 5s. 7.>6 billion in fiscal 8DD> primarily because of a decrease in leased assets to 5s. 6D.D7 billion at year-end fiscal 8DD: compared to 5s. 66.:9 billion at year-end fiscal 8DD> since we are not entering into new lease transactions. (ther income increased by ;7.DF to 5s. >.>9 billion for fiscal 8DD: compared to 5s. 9.79 billion in fiscal 8DD> primarily due to increase in income by way of di"idend from our subsidiary companies and increase in profit on sale of land! buildings and other assets. ;ROEI7ION7 AN& (AC <ro"isions and contingencies 1eCcluding pro"ision for taC4 increased to 5s. 88.8> billion in fiscal 8DD: from 5s. :.@8 billion in fiscal 8DD> primarily due to higher pro"isions created on standard assets! in accordance with the re"ised guidelines issued by 5B ! a higher le"el of specific pro"isioning on retail loans due to change in the portfolio miC towards non collateralised loans and seasoning of the loan portfolio and lower le"el of write-backs.

tIs total assets increased by 7:.6F to 5s. 7!99>.;? billion at year-end fiscal 8DD: from 5s. 8!;67.?@ billion at year-end fiscal 8DD> primarily due to increase in ad"ances and in"estments. %et ad"ances increased

by 79.DF to 5s. 6!@;?.>> billion at year-end fiscal 8DD: from 5s. 6!9>6.>7 billion at year-end fiscal 8DD> primarily due to increase in retail ad"ances in accordance with our strategy of growth in our retail portfolio! offset! in part! by reduction in ad"ances due to repayments and securitisation. 5etail ad"ances increased 7?.;F to 5s. 6!8::.D7 billion at year-end fiscal 8DD: from 5s. @86.@? billion at year-end fiscal 8DD>. #otal in"estments at year-end fiscal 8DD: increased by 8:.;F to 5s. @68.;? billion compared to 5s. :6;.9: billion at year-end fiscal 8DD> primarily due to 76.@F increase in in"estment in Go"ernment and other appro"ed securities in ndia to 5s. >:7.>? billion at year-end fiscal 8DD: from ;6D.:9 billion at year-end fiscal 8DD> in line with the increase in our net demand and time liabilities. Banks in ndia are required to maintain a specified percentage! currently 8;.DF! of their net demand and time liabilities by way of liquid assets like cash! gold or appro"ed unencumbered securities. (ther in"estments 1including debentures and bonds4 increased by 6>.:F to 5s. 87?.@D billion at year-end fiscal 8DD: compared to 5s. 8D9.:7 billion at year-end fiscal 8DD>! reflecting an increase in in"estments in insurance and international subsidiaries! pass through certificates and credit linked notes. #otal assets 1gross4 of o"erseas branches 1including o"erseas banking unit in ,umbai4 increased by @D.8F to 5s. ;89.:6 billion at year-end fiscal 8DD: from 5s. 8:;.?> billion at year-end fiscal 8DD>. tIs equity share capital and reser"es at year-end fiscal 8DD: increased to 5s. 897.67 billion as compared to 5s. 888.D> billion at year-end

fiscal 8DD> primarily due to retained earnings for the year and eCercise of employee stock options. As per the transition pro"ision of Accounting Standard 6; - 15e"ised4 on $Accounting for retirement benefits in financial statements of employer0! the difference in the liability on account of retirement benefits created by the Bank at ,arch 76! 8DD> due to the re"ised standard ha"e been adjusted in $5eser"es and Surplus0. #otal deposits increased 7@.>F to 5s. 8!7D;.6D billion at year end fiscal 8DD: from 5s. 6!>;D.?7 billion at year-end fiscal 8DD>. #his is commensurate with our focus of increased funding through deposits. (ur sa"ings account deposits increased to 5s. 8??.7? billion at year-end fiscal 8DD: from 5s. 8D@.7: billion at year-end fiscal 8DD>! while current deposits increased to 5s. 867.:> billion at year-end fiscal 8DD: from 5s. 6>;.:7 billion at year-end fiscal 8DD>. #erm deposits increased by 96.7F to 5s. 6!?D8.@> billion at year-end fiscal 8DD: from 5s. 6!8:;.:7 billion at yearend fiscal 8DD>. #otal deposits at year-end fiscal 8DD: constituted :>.;F of our funding 1i.e. deposit! borrowings and subordinated debts4. Borrowings 1including subordinated debt4 increased to 5s. :D>.>6 billion at year-end fiscal 8DD: from 5s. 9?>.>> billion at year-end fiscal 8DD> primarily due to increase in borrowings of foreign branches. *ontingent liabilities increased by 98.;F or 5s. 6!>:@.8; billion to 5s. ;!>8@.>D billion at year-end fiscal 8DD: from 5s. 7!@;D.7; billion at year-end fiscal 8DD> primarily due to a 7;.9F increase in interest

rate swaps and currency options and a 9;.DF increase in liability on account of outstanding forward eCchang econtracts. N;A7 (NON ;ER6ORMIN' A77E(7) #he ratio of net non-performing assets to net customer assets increased to D.@?F at year-end fiscal 8DD: compared to D.:6F at year-end fiscal 8DD>. At year-end fiscal 8DD:! the gross nonperforming assets 1net of write-offs and unpaid interest4 were 5s. 96.>? billion compared to 5s. 88.:7 billion at year end fiscal 8DD>. Gross of technical write-offs! the gross non-performing assets at yearend fiscal 8DD: were 5s. 9?.;D billon compared to 5s. 8@.>7 billion at year-end fiscal 8DD>. #he co"erage ratio 1i.e. total pro"isions and technical write-offs made against non-performing assets as a percentage of gross non performing assets4 at year-end fiscal 8DD: was ;?.7:F compared to >7.:8F at year-end fiscal 8DD>. n addition! total general pro"ision made against standard assets was 5s. 68.@; billion at year-end fiscal 8DD:. (ur in"estments in security receipts issued by Asset 5econstruction *ompany 1 ndia4 &imited! a reconstruction company registered with 5B were 5s. 8;.7? billion at year-end fiscal 8DD:. (ur net restructured standard loans decreased from 5s. ;7.6> billion at year-end fiscal 8DD> to 5s. 9?.?7 billion at year-end fiscal 8DD:. #he effecti"e taC rate of 69.:F for fiscal 8DD: was lower compared to the statutory taC rate of 77.>>F primarily due to concessional rate of taC on capital gains! eCemption of di"idend income! deduction

towards special reser"e and deduction of income of offshore banking unit.

15S. % B && (%4

#EAR ENDED GROSS NPA NET NPA NET CUSTOMER ASSETS 4 OF NET NPA TO NET CUSTOMER ASSETS
DIVIDEND

March 31, 2005

79.7: 6@.?7 @:?.@9 8.D7F

March 31, 2006

88.:7 6D.:; 6!;8D.D: D.:6F

March 31, 2007

96.>? 8D.6@ 8!D;7.:9 D.@?F

The Board has recommended a hi!her di$idend of ://; for <6-//2 i.e. 's. :/ er e%uity share =e%ui$alent to >"? /.@A er A+"B as com ared to C.; for <6-//A rimarily due to hi!her ro$isions created on standard assets ,a hi!her le$el of s ecific ro$isionin! on retail loans. CONSOLIDATED PROFIT #he consolidated profit after taC increased 69F to 5s. 8!:>6 crore 1USL >7; million4 in )'8DD: from 5s. 8!98D crore 1USL ;;: million4 in )'8DD>. #he consolidated profit was lower than the standalone profit due to the accounting losses of * * <rudential &ife nsurance

*ompany 1 * * &ife4. ts profit under US GAA< accounts was 5s. 76.8: billion as compared to consolidated profit of 5s. 8:.>6 billion under ndian GAA< in fiscal 8DD:.

=.2 COM;ARA(IEE INCOME 7(A(EMEN(

TREND ANAL#SIS SUMMARISED PROFIT 3 LOSS A(C (ON =1 MARCH. 200B)
='". IN BILLI(NB

;AR(IC:LAR7
nterest income nterest eCpense %et interest income %on-interest income J )ee income J &ease income J (thers *ore operating income (perating eCpenses .irect marketing agency 1.,A4 eCpense &ease depreciation! net of lease equaliAation *ore operating profit %et treasury income (perating profit <ro"isions! net of writebacks <rofit before taC #aC! net of deferred taC ;"o0i! a0! " !a)

2005
15S.4

2006
15S.4

2007
15S.4

JChan(2006)
9>.;F 9>.6F 9:.;F 9@.@F ;;.7F 16D.D4 666.8F >?.BJ 9D.@F 7;.6F 1>.:4 6B.6J ;?.:F ?9.>6F 22.6J >.:F 26.BJ

JChan(200B)
60.BJ B0.>J >0.DJ =D.>J ><.>J (=>.1) <=.0J >0.2J >0.=J 2D.<J (=1.D) >?.=J <1.1J 1?1.1J 1B.?J (=.2) 22.>J

@9.6D >;.:6 8?.7@ 8:.D; 8D.@? 9.D6 8.D> <<.>> 8;.6: 9.?; 8.@: 22.>< 8@.;> 9.8@ 2<.2B ;.88 20.0<

697.D> @;.@: 9:.D@ 98.98 79.9: 7.>6 9.79 ?D.<1 7;.9: 66.:: 8.:: =D.<0 1D.>84 7?.?? :.@8 =0.DB ;.;> 2<.>0

22D.D> 16=.? 66.=6 <D.1> <0.12 2.=? 6.6> 12<.<0 >D.BD 1<.2> 1.?? <?.<D 0.1< <?.B> 22.26 =6.>? <.=? =1.10

By anlysin! the summari7ed rofit & loss account of ICICI Ban1, the follo#in! trends are resented4

 O1 "a!in- 1"o0i! in," as # <1J !o Rs. <.?B> ,"o" 0o" 6A200B 0"o* Rs. =.??? ,"o" 0o" 6A2006 5hi,h is / ss !han as ,o*1a" # !o in," as # <?.BJ !o Rs. =.??? ,"o" 0o" 6A 2006 0"o* Rs. 2.D<6 ,"o" 0o" 6A200<. ;"o0i! a0! " !a) in," as # 22J !o Rs. =.110 ,"o" 0"o* Rs. 2.<>0 ,"o" ,"o" 0o" 6A200<. ;"o0i! 3 0o" !a) in," as # 1?J !o Rs. =.6>? ,"o" 0o" 6A200B 0"o* Rs. =.0DB ,"o" 0o" 6A2006 5hi,h is a/so / ss !han as ,o*1a" # !o in," as # !o 22.6 J !o Rs. =.0DB ,"o" 0o" 6A2006 0o* Rs. 2.<2B ,"o" 0o" 6A200<. N ! in! " s! in,o* in," as # >1J !o Rs. 6.6=6 ,"o" 0"o* Rs. >.B0D ,"o" ,"o" 0o" 6A200<. 6 in,o* in," as # ><J in 200B 5hi,h is / ss !han as ,o*1a" # 0o" 6A200B 0o" 6A200B

0o" 6A2006 5hi,h is / ss !han as ,o*1a" #

!o in," as # 26.BJ !o Rs. 2.<>0 ,"o" 0o" 6A2006 0"o* Rs. 2.00<

0o" 6A2006 5hi,h is / ss !han as ,o*1a" #

!o in," as # >B.<J !o Rs. >.B0D ,"o" 0o" 6A2006 0"o* Rs. 2.?=D

!o <<.=J in," as # in 2006 In! " s! )1 ns s in," as # a! a 2 "+ hi-h "a! 0"o* >6.1J in 6A2006 !o B0J in 6A200B.

 In! " s! in,o* is in," as # a! a hi-h " "a! !han !h 1" 2io$s + a" i. . >BJ in 2006 !o 61J in 200B. In," as in non-in! " s! in,o* is / ss !han in 200B >DJ as

,o*1a" # !o in," as in 2006 =DJ. ;"o2ision is in," as # a! a hi-h "a! as ,o*1a" # !o 1" 2io$s + a"s ?<J in 2006 !o 1?1J in 200B.

3.3 COMPARATIVE FINANCIAL POSITION STATEMENT

TREND ANAL#SIS SUMMARI5ED BALANCE6SHEET 7ON MARCH 318 299":
(R7. In ,"o" )

PARTICULARS
*ash balance with banks = S&5 -*ash = bank balances -S&5 in"estment Ad"ances (ther n"estment )iCed and other Assets

200<
15S.4 9:!968 68!@7D 79!9?8 @6!9D; 8!?;9 68!?7> 16B.6<D 68!;;D :7: 66!?67 7;D @@!?6@ 6@!79? 88!9D;

2006
15S.4 >?!66; 6:!D9D ;6!D:; 69>!6>7 8D!9:7 6>!>7? 2<1.=?D 88!8D> ?@D 86!76> 7;D 6>;!D?7 67!6@D 7;!9::

200B
15S.4 10>.>?D =B.121 6B.=6? 1D<.?66 2=.?D0 20.>1= =>>.6<? 2>.=1= ?DD 2=.>1> =<0 2=0.<10 10.?=B <D.?2=

JChan(2006)
97.:F 76.?F 9?.6F ;@.@F 96.@F 8@.>6F 9@.@F :>.@F 8D.?F ?D.9F >;.9F 176.6>F4 ;?.8F

JChan(200B)
<=J 11?J =2J =>J 1BJ 2=J =BJ DJ 1J 10J >0J (1?J) 6DJ

TOTAL ASSETS
%et Borth -+quity *apital -5eser"es <reference *apital .eposits +rstwhile * * Borrowings (ther Borrowings

(ther &iabilities

67!6?: 16B.6<D

6;!D?7 2<1.=?D

1?.?2> =>>.6<?

69.9F 9@.@F

2<J =BJ

TOTAL LIABILITIES

By anlysin! the balance sheet of ICICI Ban1, the follo#in! trends are resented4 Total assets and total liabilities are increased in -//2 from 's. -.:DCE crore to 's. D@@A.C Crore i.e. D2; #hich is less than as com ared to increase in -//A from 's. :A2A.E crore to 's. -.:DCE crore i.e. @E.E;. Increase in cash balance #ith ban1 in -//2 is more than in the re$ious year -//A. In -//A it is D-; and in -//2 it is ::C;. But increase in "L' in$estment in -//2 is less than the re$ious year. In -//A it is @C; and in -//2 it is D-;. Increase in ad$ances in -//2 is A/; from -//A #hich is less than as com ared to increase in ad$ances in -//A is D@; from -//.. Increase in fi8ed and other assets is also less than in -//2 from -//A i.e -D; as com ared to D/; in -//A from -//.. &rst#hile ICICI borro#in!s is decreasin! in both years but rate of decreasin! is less in -//2 i.e. :C; but in -//A it is D:;.

 Increase in net #orth is also less than from re$ious year in -//2 i.e C/; in -//A to E; in -//2. Increase in e%uity ca ital is only :; in -//2 #hereas in -//A it is -:; and increase in reser$e in -//2 is $ery less as com ared to increase in -//A i.e. from :/; to C/;. @/;+e osits is increased in -//2 from -//A #hich is less than as com ared to A.; increase in de osits in -//A from -//.. Increase in other liabilities is more in -//2 than in -//A i.e from :@; in -//A to -.; in -//2. AE;borro#in! is increased in -//2 from -//A #hich is more than as com ared to .C; increase in borro#in! in -//A from -//..

3.4 RATIO ANAL#SIS

1: CURRENT RATIO C;++%1' R-'.*/ C;++%1' Ass%'s(C;++%1' L.-&.0.'.%s I1 299! Current AssetsF:2/.@/G:@A:.ADF:AD-./D billion =cash G ad$ancesB Current LiabilitiesF:A..2DGD.@.22G:D:.E/FA.-.@/billion =short-term de ositsG borro#in!sB Current 'atioF:AD-./DHA.-.@/F2.5 1 I1 299" Current AssetsFD2:.-:G:E.C.AAF-D-E.C2billion =cash G ad$ancesB

Current LiabilitiesF-:D.2AG:/C.D2G.EC.-DFE-/.DA billion =short-term de ositsG borro#in!sB Current 'atioF-D-E.C2HE-/.DAF2.! 1 2: <UICK RATIO Iuic1 'atioFIuic1 AssetsHCurrent Liabilities I1 299! Iuic1 AssetsF:2/.@/billion =cash in hand and other ban1B Current LiabilitiesFA.-.@/billion Iuic1 'atioF:2/.@/HA.-.@/F9.2! 1 I1 299" Iuic1 AssetsFD2:.-:billion =cash in hand and other ban1B Current LiabilitiesFE-/.D/billion Iuic1 'atioFD2:.-:HE-/.D/F9.49 1 3: RETURN ON AVERAGE ASSETS R%';+1 *1 -=%+-2% -ss%'s/ N%' .1>*?%(-=%+-2% -ss%'s@199 -=%+-2% -ss%'s/ '*'-0 -ss%'s -' ',% &%2.11.12 A '*'-0 -ss%'s -' ',% %1B(2 I1 299!4 net incomeF-..@/ billion A$era!e assetsF =:A2A..EG -.:D.CEBH-F -/E..-@ 'eturn on a$era!e assetsF -..@/H-/E..-@J:// F 1.214 I1 299"4 net incomeF D:.:/ billion A$era!e assetsF =-.:D.CEG D@@A..CBH-F -EC/.-@ 'eturn on a$era!e assetsF D:.:/H-EC/.-@J://F1.944 4: RETURN ON AVERAGE E<UIT# R%';+1 *1 -=%+-2% %C;.'D / N%' .1>*?%(-=%+-2% %C;.'D@199 -=%+-2% %C;.'D/ '*'-0 %C;.'D -' ',% &%2.11.12 A '*'-0 %C;.'D -' ',% %1B(2 I1 299!4 net incomeF-..@/ billion

A$era!e e%uityF =:-E.//G--...ABH-F :22.-C 'eturn on a$era!e e%uityF -..@/H:22.-CJ:// F 1".544 I1 299"4 net incomeF D:.:/ billion A$era!e e%uityF =--...AG-@A.ADBH-F -DA.:/ 'eturn on a$era!e e%uity F D:.:/H-DA.:/J://F13.1"4 5: FIXED(WORTH RATIO F.E%B W*+', R-'.*/N%' F.E%B Ass%'s( T-12.&0% N%' W*+', I1 299! Net <i8ed AssetsF DE.C/ billion Tan!ible Net ,orthF --.... billion <i8ed ,orth 'atioFDE.C/H--....F 9.1F 1 I1 299" Net <i8ed AssetsF DE.-D billion Tan!ible Net ,orthF -@A.A- billion <i8ed ,orth 'atioFDE.-DH-@A.A- F 9.1! 1 !: OPERATING PROFIT TO WORKING FUNDS OG%+-'.12 P+*H.' T* W*+I.12 F;1Bs/*G%+-'.12 G+*H.'( -=%+-2% -ss%'s@199 I1 299! ( eratin! rofitFDC.C/ billion A$era!e assetsF-/E..-@ ( eratin! rofit to #or1in! fundFDC.C/H-/E..-@J://F 1.F54 I1 299" ( eratin! rofitF.C.C@ billion A$era!e assetsF-EC/.C@ ( eratin! rofit to #or1in! fundF.C.C@H-EC/.C@J://F 1.$F4 =a ro8imatelyB

RATIOS

IN 299!

IN 299"

Current 'atio Iuic1 'atio 'eturn (n Assets 'eturn (n &%uity <i8edH#orth 'atio ( eratin! rofit to #or1in! funds

-..4: /.-A4: :.-:; :2..@; /.:C4: :.C.;

2.! 1 9.49 1 1.944 13.1"4 9.1! 1 1.$F4

The abo$e table sho#s that4- both current ratio and %uic1 ratio is li%uidity ratio. The ideal ratio for current ratio is -4: and ideal ratio for %uic1 ratio is :4:. In these table current ratio of both year is hi!her than the ideal ratio #hich sho#s that there is enou!h current assets #hich ma1e the ban1 able to ay its current liabilities on time but %uic1 ratio is lo#er than the ideal ratio #hich sho#s that ban1 ha$e not enou!h li%uid assets to ay their current liabilities. Therefore ban1 should 1ee some assets in the form of li%uid assets such as cash, mar1etable securities etc. 'eturn on e%uity, return on assets and o eratin! rofit to #or1in! funds are rofitability ratio. The hi!her the rofitability ratio of any or!ani7ation is sho# the better osition of that or!ani7ation. The rofitability ratio of ICICI ban1 is $ery lo#. It is deceasin! from the re$ious year. <i8edH#orth ratio measures the e8tent to #hich o#ner9s e%uity has been in$ested in lant and e%ui ment . A lo#er ratio indicates a ro ortionately smaller in$estment in fi8ed assets. This ratio sho#s that ban1 has in$ested more in current assets than the fi8ed assets. It could be a !ood osition in case of li%uidation.

=.< CA7H 6LO% 7(A(EMEN(

(A7 ON AEAR EN&E& ON =17( MARCH. 200B)
1rs. n $DDDIs4

;AR(IC:LAR7

6A200B

FY2006

Cash flow from operating activities

%et profit before taCes . A#4$s!* n!s 0o"N .epreciation and amortisation %et 1appreciation4 M depreciation on in"estments <ro"ision in respect of non-performing assets <ro"ision for contingencies = others .i"idend from subsidiaries 1<rofit4 M &oss on sale of fiCed assets A#4$s!* n!s 0o"N Incr as !d cr as "n "n# s$% n$s ncreaseMdecrease in ad"ances ncreaseMdecrease in borrowings ncreaseMdecrease in deposits ncreaseMdecrease in other assets ncreaseMdecrease in other liabilities and pro"isions (1D.666.1<B) (<11.2<<.26B) <B.0=D.D2B 6<>.2B0.1>D (2?.B<?.DDD) 26.??6.1DD 178,515,852 R &und!'(a)% n$* o& d"r c$ $a+ s %et cash generated from operating acti"ities1A4 Cash 0/o5 0"o* in2 s!in- a,!i2i!i s n"estments in subsidiaries andMor joint "entures ncome recei"ed on abo"e in"estments <urchase of fiCed assets <roceeds from sale of fiCed assets 1<urchase4Msale of held to maturity securities N ! ,ash - n "a! # 0"o* in2 s!ina,!i2i!i s(B) Cash 0/o5 0"o* 0inan,in- a,!i2i!i s (1?.1>1.=12) 230,619,522 (1<.B<?.166) >.>?>.D1< (>.D2>.62=) >.=>B.=00 (1B1.BB6.1=>) 1696!D6@!89:4 1;;8!668!@964 >;!9:>!D;8 >;8!>97!@7@ 17>!:D9!8784 67!?>6!9>@ 2,145,040 1?!>8D!8?74 46,529,336 1?!;D@!6@94 7!7?>!@8@ 1;!9:9!DD64 @98!?97 1>@!8?>!7?64 =6.>?0.=D1 B.6=D.002 D.D1?.>1D 21.<D2.DDD 2<1.=11 (>.>?>.D1<) (1.1<2.22>) 70,244,982 7D!@>>!D:> @!D86!8D> ?!7D6!9D7 :!@9:!899 88>!?D6 17!7?>!@8@4 1:6!8884 53,004,579

(183,626,708 (78,939,804) )

<roceeds from issue of share capital %et proceedsM1repayment4 of bonds .i"idend and di"idend taC paid N ! ,ash - n "a! # 0"o* 0inan,ina,!i2i!i s(C) E00 ,! o0 ),han- 0/$,!$a!ion on !"ans/a!ion " s "2 (&) N ! in," as /(# ," as ) in ,ash an# ,ash K$i2a/ n!s)(ASBSCS&) Cash an# ,ash K$i2a/ n!s a! 1s! A1"i/ Cash an# ,ash K$i2a/ n!s a! =1s! Ma",h

2.0B>.>1> 160.B1B.=?0 (?.6>6.021) 154,145,774 (327,587) 200,811,001 1B0.>02.2>< =B1.21=.2>B

:@!?67!?77 ?>@!;@8 1:!6:9!7@D4 73,509,035 3,955 41,102,522 68@!8@@!:87 6:D!9D8!89;

CHA;(ER-> C(NCL>"I(N

The balance-sheet alon! #ith the income statement is an im ortant tools for in$estors and many other arties #ho are interested in it to !ain insi!ht into a com any and its o eration. The balance sheet is a sna shot at a sin!le oint of time of the com any9s accounts- co$erin! its assets, liabilities and shareholder9s e%uity. The ur ose of the balance-sheet is to !i$e users an idea of the com any9s financial osition alon! #ith dis layin! #hat the com any o#ns and o#es. It is im ortant that all in$estors 1no# ho# to use, analy7e and read balance-sheet. P & L account tells the net rofit and net loss of a com any and its a ro riation.

In the case of ICICI Ban1, durin! fiscal -//2, the ban1 continued to !ro# and di$ersify its assets base and re$enue streams. Ban1 maintained its leadershi in all main areas such as retail credit, #holesale business, international o eration, insurance, mutual fund, rural ban1in! etc. Continuous increase in the number of branches, AT0 and electronic channels sho#s the !ro#th ta1e lace in ban1. Trend analysis of rofit & loss account and balance sheet sho#s the ; chan!e in items of & l aHc and balance sheet i.e. ; chan!e in -//A from -//. and ; chan!e in -//2 from -//A. It sho#s that all items are increased mostly but increase in this year is less than as com ared to increase in re$ious year. In & l aHc, all items li1e interest income, non-interest rofit, rofit income, interest e8 enses, o eratin! e8 enses, o eratin!

before ta8 and after ta8 is increased but in mostly cases it is less than from re$ious year but in some items li1e interest income, interest e8 enses, ro$ision ; increase is more. "ome items li1e ta8, de reciation, lease income is decreased. "imilarly in balance sheet all items li1e ad$ances,

cash, liabilities, de osits is increased e8ce t borro#in!s #hich is decreased. ; increase in some item is more than re$ious year and in some items it is less. 'atio analysis of financial statement sho#s that ban19s current ratio is better than the %uic1 ratio and fi8edH#orth ratio. It means ban1 has in$ested more in current assets than the fi8ed assets and li%uid assets. Ban1 ha$e !i$en more ad$ances to its customer and they ha$e less cash in their hand. Profitability ratio of ban1 is lo#er than as com ared to re$ious year. 'eturn on e%uity is better than the return on assets. The cash flo# statement sho#s that net increase in cash !enerated from o eratin! and financin! acti$ities is much more than the re$ious year but cash !enerated from in$estin! acti$ities is ne!ati$e in both year. There is increase of :.E,2/C,@2E thousand '". in Increase in cash & cash e%ui$alents from re$ious year. Therefore analysis of cash flo# statement sho#s that cash inflo# is more than the cash outflo# in ICICI Ban1. Thus, the ratio analysis and trend analysis and analysis of cash flo# statement sho#s that ICICI Ban19s financial osition is !ood. Ban19s rofitability is increasin! but not at hi!h rate. Ban19s li%uidity osition is fair but not !ood because ban1 in$est more in current assets than the li%uid assets. As #e all 1no# that ICICI Ban1 is on the first osition amon! all the ri$ate sector ban1 of India in all areas but it should ay attention on its rofitability and li%uidity. Ban19s osition is stable.

CHAPTER-2

RECOMMENDATION & SUGGESTION

"ome of the recommendation and su!!estion are as follo#s4 o The attention is re%uired on the areas of !ro#th, rofitability ,ser$ice le$el and buildin! talent. o To increase the rofit of ban1, ban1 should decrease their o eratin! e8 enses and increase their income.

o To increase its li%uidity, ban1 should 1ee some more cash in its hand instead of !i$in! more and more ad$ances. o ntroduce quality consciousness and standardiAation of the work system and procedures. o ,ake manager competiti"e and introduce spirit of market-orientation and culture of working for customer satisfaction. o #here is need to build the knowledge and skill base among the employees in the conteCt of technology. o <erformance measure should not only co"er financial aspects i.e. quantitati"ely aspects but also the qualitati"e aspects. o t is high time to focus on work than the work-achie"ed. o Bank should increase its retail portfolio. o Bank should manage its all risk such as credit! market and operational risk properly and should be managed by a person who are highly skilled and qualified. Bank should pay attention on its subsidiary $ * * <rudential &ife nsurance *ompany &imited

BIBLIOGRAPH#

REFERENCE BOOKS <.%. GA5S2%+' $Banking &aw And <ractices0 Sultan *hand = Sons SU%.5A, = GA5S2%+' $Banking! #heory &aw And <ractices0 Sultan *hand = Sons .5. S. %. ,A2+S2BA5 $<rinciples (f Accounting0 Sultan *hand = Sons

WEBSITES
www.icicibank.com www.pruicici.com www.in"estopedia.com

(I) ;RO6I( AN& LO77 A/C

For The Year Ended March 31,2007
15S. % ODDDS4

PARTICULARS

SCHEDU LE
67 69

AS ON 31.93.299"

AS ON 31.93.299!

I. INCOME nterest earned (ther income TOTAL INCOME II. EXPENDITURE nterest eCpended (perating eCpenses <ro"ision and contingencies TOTAL EXPENDITURE III. PROFIT/LOSS %et profit for the year <rofit brought forward (O(AL ;RO6I(/(LO77)
T+-1sH%+ '* S'-';'*+D +%s%+=%

22D.D>2.D16 <D.2D1.6?6 2?D.2=>.602

697!D>6!78; 96!?D?!?;@ 6?9!?:D!6?9

6; 6> 6:

16=.<?>.D?> 66.D0<.<6> 2B.6>1.?<> 2<?.1=2.>02

@;!@:9!9?7 ;D!D66!;7: 67!9?7!96: 6;@!9>@!97:

=1.102.200 2.D=>.>16 =>.0=6.616 B.?00.000 1.16? 1.210.000 >.<00.000 D.011.6D> =< 1.<=0.DB? D?2.B>1

8;!9DD!:9: 6!??8!886 8:!8?8!886 >!7>D!DDD 888 >?D!DDD ;!@DD!DDD 167!8D7!7;D4 8!:;D!DDD 67!8D7!7;D :!;@7!78> 7; 6!D>9!@>@ 8!@79!96>

IV. APPROPRIATIONS/ TRANSFERS

#ransfer to reser"e fund #ransfer to capital reser"e #ransfer to in"estment fluctuation reser"e #ransfer from in"estment fluctuation reser"e #ransfer to special reser"e #ransfer to re"enue and other reser"es <roposed equity share di"idend <roposed preference share di"idend *orporate di"idend taC Balance carried o"er to balance sheet

TOTAL
S.21.H.>-1' G*0.>.%s3 1*'%s '* ->>*;1's
EARNIN' ;ER 7HARE7 Basic1rs.4 .iluted1rs.4 )ace "alue per share1rs.4 6?

=>.0=6.616

8:!8?8!@>?

=>.?> =>.6> 10.00

78.9@ 78.6; 6D.DD

7II: BALANCE6SHEET
=Balance sheet of ICICI ban1 as on 0arch D:,-//2B
15s. n ODDDIs4

Particulars

)chedule As o =1.0=.200B (R7.)

6 8 7 9 ; 12.>D=.>=B 2=>.1=D.20B 2.=0<.101.?6= <12.<60.26= =?2.2?6.=<6 =.>>6.<?1.126

As o =1.0=.2006 (R7.)
68!7@?!79; 867!6>6!;:6 6!>;D!?76!:67 7?;!86@!67> 8;8!8:?!::: 8!;67!??@!;98

CA;I(AL & LIABILI(IE7

Capital

5eser"e = Surplus .eposits Borrowings (ther liabilities = pro"isions (O(AL CA;I(AL & LIABILI(IE7

A77E(7 *ash and Balance with 5eser"e Bank (f ndia Balances with banks and money at calls and short notice n"estment Ad"ances

> : ? @

1?B.06?.BD> 1?>.1>>1><2 D12.<B?.>1? 1.D<?.6<<.DD6

?@!797!:7: ?6!D;?!;D? :6;!9:7!@99 6!9>6!>76!D?@

)iCed Assets (ther Assets (O(AL A77E(7

6D 66

=D.2=>.2=2 16>.??D.2=> =.>>6.<?1.126

7@!?D:!66; 68>!;:;!69@ 8!;67!??@!;98 7!@;D!77>!>;; 97!7?9!>9?

*ontingent &iabilities 68 ;!>8@!;@9!D>D Bills for *ollection 9D!9>;!>6D Significant accounting policies and 6? notes to accounts 1#he Schedule refer to abo"e form an integral part of balance sheet4